Federal Actions and Local Decisions Shape Data Center Expansion

Federal policy changes and local government decisions are influencing the development of large-scale data centers across the United States, with recent actions affecting both national infrastructure and specific projects such as one in Bessemer, Alabama.

In April 2025, President Trump signed an executive order instructing Cabinet officials to identify coal-powered sites that could be repurposed for artificial intelligence data centers. Later, in July 2025, another executive order was signed to speed up federal permitting for data centers requiring over 100 megawatts of new power, including changes to environmental review procedures and the revocation of a previous executive order from the Biden administration.

At the local level, the Bessemer City Council in Alabama voted in November 2025 to rezone 670 acres from residential to light industrial use. This decision allowed the construction of a hyperscale data center project known as Project Marvel, which is planned to occupy approximately 700 acres and include 18 buildings totaling about 4.5 million square feet.

The proposed Bessemer data center is designed to support substantial computing operations and would require significant resources. The facility is estimated to draw about 1,200 megawatts of electricity, which is more than 90 times the residential usage in Bessemer and over 10 times that of Birmingham. Additionally, the project would increase the overall electricity demand for Alabama Power by roughly 10%.

What the numbers show

• Project Marvel would cover around 700 acres with 18 buildings
• The facility is expected to use about 1,200 megawatts of electricity
• Daily water demand for the data center is projected at 2 million gallons

Water usage for the new data center is projected to reach approximately 2 million gallons per day, which would account for about one-third of the Warrior River Water Authority’s current supply and two-thirds of Bessemer’s total water demand. These resource requirements have contributed to ongoing discussions about the impact of such developments on local infrastructure and utilities.

Concerns have been raised by residents and environmental organizations regarding the environmental effects of the Bessemer project. Specific issues include potential threats to the Birmingham darter, a rare fish species found in the area. These concerns have been cited in public discussions and local media reports.

On a broader scale, a coalition of more than 230 environmental groups has called for a nationwide moratorium on new data centers. The coalition cited both environmental and economic factors in its request, reflecting a growing debate about the expansion of data center infrastructure in the United States.

Federal and local policy actions continue to shape the landscape for data center development. The combination of executive orders and local government decisions has contributed to ongoing growth in the sector, while also prompting responses from community and environmental groups.

* This article is based on publicly available information at the time of writing.