At a glance
- Documents Cloverleaf shared state that Lambda agrees to use commercially reasonable efforts to invest at least $16 billion in the project no later than seven years after the placed-in-service date.
- For allocators, the binding near-term figure is the $16 billion floor, which attaches to the seven years after the placed-in-service date rather than the $33.1 billion headline.
- Cloverleaf's project page puts the site near the junction of US Highway 80 and Alabama Highway 21 at Burkville, about six miles southwest of Montgomery.
Lambda said on Nov. 4 it will take over Project Red Clay, a 1GW data center campus planned in Lowndes County, Alabama, and expects to invest $33.1 billion in the state.
Documents Cloverleaf shared state that Lambda agrees to use commercially reasonable efforts to invest at least $16 billion in the project no later than seven years after the placed-in-service date. The company said the campus can scale to 1.5GW. Construction is expected to begin in the first quarter of 2027 and run up to five years, with first operations targeted for the fourth quarter of 2028. Cloverleaf Infrastructure is readying the site.
For allocators, the binding near-term figure is the $16 billion floor, which attaches to the seven years after the placed-in-service date rather than the $33.1 billion headline. Lambda estimates the development will generate 1,000 jobs during construction and support more than 225 full-time roles once operational, and it is directing $10 million through a Community Benefits Agreement with the Central Alabama Community Foundation.
Cloverleaf's project page puts the site near the junction of US Highway 80 and Alabama Highway 21 at Burkville, about six miles southwest of Montgomery. Earlier reports put the buildings at about 3.01 million square feet on 800 acres: four 720,000 sq ft data halls, a 100,000 sq ft warehouse and a 30,000 sq ft office. Thomas Ellis, chairman of the Lowndes County Economic Development Commission, said the project "will give Lowndes County the ability to shape its own future."
Lambda raised a $1 billion GPU-backed facility at a 6.78% coupon with an investment-grade rating, as Private Wealth Daily previously reported. Alabama Power will supply the campus, pending regulatory approval.
Headline pledge is double the enforceable floor
Announced investment in Alabama vs. the contractual minimum, $B
Announced investment
$33.1B
Committed minimum
$16B
The $16B floor is due within seven years of the placed-in-service date.
Reported by the Data centers & fiber desk from Data Center Dynamics and Private Wealth Daily archive. Published . Corrections