Alabama Legislature remains supportive of digital data centers

While an increasing number of states are enacting legislation to restrict the construction and/or operation of digital data centers, the Alabama Legislature has taken no such measures.

In fact, a 2025 bill introduced in the Alabama Senate sought to prevent the state from restricting digital mining operations in any manner.

That bill died in the last legislative session but Alabama remains an attractive location to digital mining companies in large part due to lower off-peak electricity rates and adequate rural locations to house them.

The largest off-peak electricity customer of the Russellville Electric Board is Synergy South, located on the south end of Jackson Avenue on property it leases from REB, just south of the Corridor V (Alabama Highway 24) overpass.

Synergy South uses massive computer hardware and software to ‘mine’ Bitcoin by generating cryptographic numbers that do not exceed a number set by the Bitcoin network’s algorithm.

Think of it as a cyber treasure hunt, with the first ‘miner’ who finds a solution receiving Bitcoin as a reward, and the process starts again.

These lucrative Bitcoin rewards are the motivation for miners to assist in the primary purpose of digital mining, to earn the right to record transactions on the blockchain for the network to verify and confirm.

It’s a pricey competition with an ever-growing number of competitors all working toward the same goal. Digital mining companies use application specific integrated circuits and custom-designed single use electronic circuits in order to be competitive in the process.

The equipment needed for Bitcoin mining is expensive and expansive. Synergy South’s mainframe computers are housed in large storage containers located on the South Jackson Avenue property.

A second digital asset mining company is expected to begin operations soon on the former MS Industries II location on Walnut Gate Road in Russellville.

As of last year, the company was awaiting approval from the Tennessee Valley Authority after an interconnection study, something required for customers who will be making large electricity load requests.

Synergy South uses a massive amount of electricity, but keeps its costs down by maximizing use during off-peak periods, where demand for electricity, and the cost, is lower.

This benefits the Russellville Electric Board because Synergy South is providing a steady source of deman for electricity during these off-peak times, primarily late at night or early morning when usage drops off.

Synergy South consumes this surplus power that might otherwise remain unused, which helps stabilize the power grid. That power is called ‘stranded energy,’ which is used in a various AT data center industries, including Bitcoin.

The Russellville Electric Board as well as City of Russellville officials have welcomed Synergy South and taken notice of the company’s civic involvement and support of local schools.

This contrasts significantly from the reception digital mining companies receive in some states.

The Maine legislature passed a law this year that freezes building of any new digital data centers.

Why the hostility? The significant amount of electricity they use seen by some states as a windfall is labeled a risk by others.

States have restricted digital mining primarily due to its massive energy consumption, which lawmakers maintain places heavy strain on power grids, drives up electricity costs for residents, and hinders climate goals.

Additionally, with constant use of cooling fans, digital mining operations can also generate significant noise pollution and air pollution, prompting environmental and public health concerns.

States including New York, Oregon and Washington are leading the way in anti-digital mining legislation.

Another argument against digital mining comes in states that primarily rely on fossil fuels for energy. With the addition of these massive electricity users, the carbon footprints created can be significant. Legislation has been considered that would require miners to utilize renewable energy sources to leases that impact.

It’s unlikely that the Alabama Legislature will take action to limit this fast-growing industry, as the only legislation seriously considered would have protected it rather than limited it.

As of April 10th, the value of one Bitcoin was $71,975. And there are more than 987,000 Bitcoins left to be mined, evidencing why the Bitcoin mining industry is so competitive.

So far, though, at least in Russellville, it’s been a win-win situation for both Synergy South and the Russellville Electric Board.