Another Data Center for Birmingham, Alabama

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Blue Cross and Blue Shield of Alabama plans to invest $55 million to build a new data center in Birmingham, according to local media. The new facility is the third significant data center project announced this month in Birmingham, the largest city in Alabama with a population of approximately 250,000.

Blue Cross/Blue Shield plans to buy 25 acres in Jefferson Metropolitan Park Lakeshore, a deal that was authorized by the Jefferson County Economic and Industrial Development Authority board of directors. The company plans to build a 55,000-square-foot center in Birmingham’s Oxmoor Valley, with plans to occupy the building in 2010.

Birmingham is one of the most affordable markets in the U.S> to operate a data center, according to a recent study by The Boyd Company, which found that it costs approximately $12.6 million in total operating costs to locate a data center facility in Birmingham, placing it 11th on the list of most affordable markets.


The Blue Cross/Blue Shield announcement follows two Birmingham data center projects announced earlier this month:

  • AT&T has announced that it will invest $40 million to upgrade its data center in Hoover, Alabama. The renovation process will take approximately 20 months, according to a company spokesperson. The upgrade is part of an ongoing expansion of AT&T’s global data center network.
  • The Southern Co., the Atlanta-based parent of Alabama Power Co., said that it will invest approximately $20 million to build a new data center in Birmingham to support its operations across the Southeast. The 72,000 square foot facility will be located at a site in Jefferson Metropolitan Park Lakeshore in the Oxmoor Valley.

Birmingham’s largest data center tenant is Wachovia Corp., which built a $400 million data center in Jefferson Metropolitan Park in 2006.

About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.