Neocloud Lambda is developing a data center campus in Lowndes County, Alabama.

The company revealed on November 4 that it was set to take over Project Red Clay, currently being readied for development by Cloverleaf Infrastructure.

Lambda estimates that the development will see it invest some $33.1bn in Alabama, and generate 1,000 jobs for the duration of the project. Documents shared by Cloverleaf state: "The company agrees to use commercially reasonable efforts to invest at least $16 billion in aggregate capital investment in the project not later than seven years after the placed-in-service date."

Once operational, Lambda says it will support more than 225 full-time job roles.

The project will be powered by Alabama Power, pending regulatory approval, and is expected to begin construction in the first quarter of 2027, with construction anticipated to take up to five years. First operations are expected to begin in Q4 2028.

According to Cloverleaf's project page, the site is located near the junction of US Highway 80 and Alabama Highway 21 at Burkville, roughly six miles (ten kilometers) southwest of Montgomery.

The campus is planned to offer 1GW of capacity, with the potential to scale up to 1.5GW. The number of buildings planned and expected size of the facilities has not been provided, but previous reports suggest that it would span roughly 3.01 million sq ft (279,638 sqm) of buildings: four data buildings of 720,000 sq ft (66,890 sqm) each, a 100,000 sq ft (9,290 sqm) warehouse, and a 30,000 sq ft (2,787 sqm) office, on 800 acres of land.

“Building a successful project starts with building strong relationships in the community,” said Stephen Balaban, co-founder and CTO at Lambda. “We want to understand what matters to Lowndes County residents and local leaders and ensure those perspectives inform our approach. We’re committed to showing up as a good neighbor, keeping the lines of communication open, and building a relationship that lasts well beyond the project’s development.”

“Lowndes County worked hard to secure this investment because we believe in what it will mean for our community’s future,” added Thomas Ellis, chairman of the Lowndes County Economic Development Commission. “Project Red Clay will bring good-paying jobs, create opportunities for local businesses, and provide lasting resources to improve our schools, roads, and essential services. Most importantly, it will give Lowndes County the ability to shape its own future, make decisions based on our community’s priorities, and create opportunities for generations to come.”

In partnership with Cloverleaf Infrastructure, Lambda is investing $10 million through a Community Benefits Agreement with the Central Alabama Community Foundation (CACF). The company has also committed to paying the full cost of power and grid infrastructure for the site, and will use closed-loop cooling systems to reduce water consumption.

In September, Lambda announced plans for a data center in Chouteau, Mayes County, Oklahoma.

Founded in 2012 and offering GPU-based cloud compute, Lambda operates out of 15 data centers across the US, according to its website, and is targeting gigawatts of compute by 2030. Microsoft and Anthropic are known customers. The company is set to go public via an IPO in the near future.