Birmingham Mayor Randall Woodfin Asserts City Had No Role in Nebius Tax Incentive Agreement

Mayor Randall Woodfin says Birmingham did not approve or offer tax incentives tied to Nebius' planned AI data center, pushing back against claims that City Hall helped broker the agreement. His comments came as the multibillion-dollar project continued moving ahead in Oxmoor Valley despite questions about how the incentive package was approved.

Nebius plans to redevelop the former Regions operations center on Milan Parkway and Lakeshore Parkway with an AI data center projected to attract nearly $35.9 billion in investment over the next 30 years. Project documents estimate the facility will create 78 jobs with average annual salaries exceeding $90,000 while returning the long-vacant property to productive use.

Woodfin said the incentive package did not originate with Birmingham City Hall. As reported by WBRC, the mayor said, "The City of Birmingham has not given any tax incentives to Nebius. And the City of Birmingham will not be giving any tax incentives to Nebius," adding that the Industrial Development Board, not the city, approved the abatements.

The Industrial Development Board approved a 65% abatement on non-education property taxes and an 80% abatement on construction-related sales and use taxes for as long as 30 years. The agreement includes no direct cash incentives, and the tax benefits are reduced if Nebius fails to meet specified investment or payroll commitments.

Project documents also contain clawback provisions requiring Nebius to repay a proportional share of the tax benefits if payroll targets are missed. If the company permanently stops operating during the abatement period, it must restore the property to at least the condition it was in when the site was acquired.

Local opposition now includes infrastructure concerns. Neighborhood residents and advocacy groups have questioned potential effects on water consumption, electricity demand, noise, and nearby communities, while Birmingham has adopted new regulations for future hyperscale data centers that do not apply to the Nebius project because its application was submitted before those rules took effect.