AL.com Reports Proposed Nebius AI Mega Factory to Receive $3.2 Billion in Tax Abatements

AL.com is reporting the City of Birmingham's Industrial Development Board has unanimously approved a total of $3.2 billion in tax abatements over 30 years for the proposed AI Mega Factory in the Oxmoor Valley neighborhood.

That's $661 million more than the facility is estimated to pay in taxes over the same period to Birmingham, Jefferson County, and the State of Alabama.

The 300MW AI Mega Factory will employ only 78 people when it opens, according to Nebius' own estimate. It will use as much electricity as 200,000 homes.

And it will require an immense volume of water to cool the more than 1 Billion Btu of heat it generates every hour—in a county that has seen drought in 17 of the last 20 years.

According to AL.com, the abatement agreement lets Nebius avoid 80% of all construction-related taxes, excluding those earmarked for education. And 65% of all noneducational property tax revenue.

Click here to read the entire article on AL.com.