Alabama data center and energy laws

What Alabama has enacted on data center and energy, what each law requires, and what the bills still moving would do. Alabama is one of 29 states that enacted a data center and energy law in the 2025 and 2026 sessions.

Bills in scope
2bills in scope
Past committee
2past committee
Most recent action
17 April 2026most recent action

Data center and energy laws enacted in Alabama

2 data center and energy laws enacted in the Alabama Legislature in the 2025 and 2026 sessions, newest first. Each links to the legislature's own page.

  • HB 399Tax abatements for data processing centers, exemption period limited, collection of certain taxes on purchases required, sunset date extendedEnacted 17 April 2026

    What it requires: For data processing centers with total peak demand of 100 megawatts or greater receiving abatements granted on or after January 1, 2027, no abatement of state noneducational ad valorem taxes shall extend beyond the date the private use industrial property is placed in service. Construction related transaction taxes on specified equipment remain eligible for abatement throughout the applicable maximum exemption period.

    Tax incentives and clawbacks

  • SB 270Electric Utilities; review by Public Service Commission of certain contracts with large load data centers further provided forEnacted 17 April 2026

    What it requires: The Public Service Commission must review contracts between utilities and large load data center customers requiring 150 megawatts or greater peak demand. The Commission must determine that such contracts provide positive benefits to other retail customers and promote conditions expected to benefit the utility's service territory over the contract term.

    Large-load tariffs and cost allocation

Data center and energy in Alabama, by topic

Data center and energy bills in Alabama

The bills not yet law, furthest along first, with what each would do.

No bills in this tracker yet. New bills appear as legislatures file them.

Bill titles link to the Alabama Legislature's own page.

What LawSignals covers

What counts as data center and energy legislation

In scope: Large-load tariffs and cost allocation; siting, zoning and permitting; tax incentives and clawbacks; on-site and co-located generation; water, cooling and emissions; and grid reliability and load flexibility.

Questions

Does Alabama have a data center and energy law?

Yes. Alabama enacted 2 data center and energy laws in the 2025 and 2026 sessions, among them HB 399 and SB 270. Each is listed on this page with what it requires.

What does Alabama legislate on most in data center and energy?

Large-load tariffs and cost allocation (1 bill) and Tax incentives and clawbacks (1 bill).

Are these summaries reviewed by a lawyer?

No. Which bills count as Data center and energy bills, and the line on what each law requires or each bill would do, are drafted by software from the bill's own text and not reviewed by an attorney. Every bill links to the legislature's own record: read the text before relying on it. The list covers bills from the 2025 and 2026 sessions.

Other practice areas in Alabama

Data center and energy legislation in other jurisdictions

49 more currently hold bills in this tracker

Know when Alabama's data center and energy law changes

An alert when a bill moves, and one report a month on what changed in every state and Congress.

Track data center and energy laws freeAbout the Data Centers and Energy Load Tracker