In a Rare Statewide Debate, Alabama Candidates Spar Over Data Centers, Utility Rates

Data centers are large facilities filled with computer equipment that store, process and move digital information. Alabama candidates are debating new construction because these facilities can bring capital investment while also placing heavy demands on electricity systems and nearby communities.

The debate focused on who pays and who is protected. Republican John Wahl called data centers a “necessary evil” and said Alabama needs them built correctly. Democrat Phillip Ensler has proposed a moratorium on new construction. He cited residents’ concerns about secrecy, community pressure and Alabama Power prices.

The issue is becoming more urgent because artificial intelligence has driven much of the new demand. Proposed campuses could consume more electricity than all Alabama homes combined if fully built. Candidates therefore face a choice between welcoming investment and addressing local control, grid demands and residential electricity costs.

The article gives a striking statewide comparison rather than a precise megawatt total. If the proposed Alabama data center campuses are built to full capacity, an Inside Climate News analysis found they would consume more energy than all homes in Alabama combined.

That scale matters because data centers operate as large concentrations of computing equipment. Their electricity demand is added to the needs of households, businesses and other users. The article connects the facilities’ growth largely to artificial intelligence tools, including large language models, rather than mainly to familiar streaming services.

The comparison has become central to the candidates’ arguments. John Wahl supports data centers but says communities must be protected. Phillip Ensler has proposed a construction moratorium and raised concerns about Alabama Power and electricity prices. The state’s high residential bills make the potential demand especially politically sensitive.

Artificial intelligence has increased demand for large data centers because AI tools rely on powerful computer systems to develop and operate. Large language models require many servers and substantial electricity, making specialized facilities attractive for handling that workload.

The article corrects a point raised during the debate. John Wahl connected data centers with services such as YouTube, cloud storage and streaming. Experts cited by Inside Climate News said the recent surge is driven largely by AI tools like large language models, rather than by those familiar services alone.

That shift changes the scale of the debate. AI demand is helping push proposed Alabama campuses toward extremely large energy requirements. If those campuses reach full capacity, their combined use could exceed the electricity consumed by every Alabama home. Candidates are now weighing AI-related investment against grid pressure and household costs.

Data center construction could bring capital investment and economic activity, but it may also create major demands on communities and the electric system. Residents cited in the debate worry about transparency, local control and facilities being imposed on their communities.

The central mechanism is electricity demand. Data centers use large amounts of power, and proposed Alabama campuses could consume more than all state homes combined at full capacity. Residents also fear Alabama Power could raise prices. Ensler has made those concerns a central campaign issue, while Wahl says communities need protection as construction proceeds.

The stakes are especially high because an Inside Climate News investigation found Alabama had the nation’s highest average residential electricity bills in 2024, the latest complete year available then. Future projects could intensify arguments over who pays for power-system needs and who gets a meaningful voice in approvals.

The Public Service Commission, or PSC, is Alabama’s state utility regulator. Its basic role is to oversee regulated utilities and decisions affecting electricity service and rates. Regulation matters because utilities have major infrastructure costs, while customers need power that is reliable and reasonably priced.

The article does not describe the PSC’s specific rate-setting process. It mentions the commission when John Wahl accused Phillip Ensler of supporting an effort to remove Alabamians’ right to vote for lieutenant governor by making the governor and lieutenant governor run as a ticket. That accusation linked utility regulation with a broader argument about public participation.

The immediate debate was therefore about both electricity oversight and democratic accountability. The article gives no final ruling on the accusation or details of the proposed change. It does establish that the PSC is the state’s utility regulator, while the lieutenant governor primarily presides over the Senate.

Eminent domain is a legal power that allows an authorized utility to acquire or use private property for infrastructure considered necessary for public service. Typically, disputes can involve the route, access, compensation or whether the proposed use meets legal requirements.

The article gives a specific example. Alabama Power sought to lay transmission lines across Fenn Church’s Shelby County property. Church fought the utility in court and won a preliminary injunction that temporarily barred access while the lawsuit continued. Alabama Power appealed that barrier.

The Alabama Supreme Court later granted the utility’s motion to stay the lower-court decision. That allowed work on the transmission-line section to move forward, according to Alabama Power. Church and the utility then reached a stalemate. The case shows how eminent domain can enable grid construction while leaving property owners to challenge the utility’s actions through the courts.

A reliable electricity system needs investment in generation, transmission and other infrastructure. Private utilities can finance and build those projects, but their costs and decisions affect every customer. Government regulation helps examine those decisions, protect property rights and limit unfair effects on households.

The article illustrates both sides. Alabama Power said its transmission project would support the security and reliability of the electric grid. Fenn Church argued that the utility was using eminent domain unfairly across his property. A lower court initially blocked access, but the Alabama Supreme Court later stayed that decision so work could proceed.

Affordability adds another challenge. Alabama residents had the highest average residential electricity bills in the nation in 2024, while proposed data centers could create enormous new demand. The balance ahead is practical: allow infrastructure and investment needed for reliability, while using regulation and public scrutiny to protect communities and customers.