Moving at terabytes per second, the information technology industry is expanding across the country.

Alabama has dialed into that progress. The state’s IT companies generate almost $1 billion annually, employs tens of thousands, and as other notable Alabama industries like automotive, aerospace and life science continue to develop, so will the need for cutting-edge technology and the brilliant minds trained to wield it.




IT Graduates in the Past Five Years



Four-Year Institutions with IT Degrees





$1 Billion

Annual Revenue


More than merely a support system, information technology serves as a major stand-alone sector of Alabama’s economy. The Alabama IT sector employs over 15,000 Alabamians and generates greater than $1 billion in annual revenue across industries like banking and finance, government, education, consumer products, GIS and utilities.

Birmingham-based BBVA Compass has contributed to this development by commencing a $400 million computer systems upgrade, requiring some 650 people and 2 million man hours to accomplish. Others, like business incubator Innovation Depot, seek to bolster this division’s economic strength by nurturing emerging biotechnology, information technology and service startups.

Economic Incentive Act of 2012

To incentivize data centers to move to Alabama, this act enhances the current statutory sales, use and property tax abatements available to these qualifying projects.

  • 10-year abatement if total capital investment is less than $200 million with 10 years from the start of construction
  • 20-year abatement if total capital investment is less than $200 million with 10 years from the start of construction
  • 30-year abatement if total capital investment is less than $200 million with 10 years from the start of construction and at least $400 million within 20 years from the start of construction

Availability and Cost of Power

Alabama Power Company is a fully integrated electric utility and is one of four electric operating companies of Southern Company. Alabama Power serves 1.4 million homes, businesses, and industries in the lower three-quarters of the state.

Data centers in Alabama Power’s service area are the company’s most competitive commercial class customers due to their operating characteristics. Alabama Power has extensive experience in providing electric service to data centers of all levels, with an understanding of how critical power reliability, power quality, redundancy and the cost of energy are to data center operations. Alabama Power is prepared to evaluate locations for data centers in its service area and advise customers on energy-efficient operating concepts, which will help data centers control their cost of energy and enhance their power quality and reliability.

Fiber Connectivity

Fiber optic carriers have a substantial presence in Alabama with diverse fiber paths connecting at several points within the state. Numerous sites have been evaluated across the state for potential data centers to locate, including Birmingham’s Jefferson Metropolitan Park Lakeshore and Grand River sites, both of which have conducted fiber connectivity studies. Notable fiber carriers around the area include:

  • Access Fiber
  • AT&T
  • CenturyTel
  • Intellifiber
  • KDL Windstream
  • Southern Telecom
  • Time Warner Telecom
  • Level 3
  • Qwest
  • Sprint
  • XO Communications
  • Verizon Wireless

IT Workforce Availability

Alabama’s average wage is below the national average, yet the state maintains a highly motivated workforce with a growing labor pool trained at some of the finest educational institutions in the country, including:

  • University of Alabama
  • Auburn University
  • University of Alabama at Birmingham
  • University of South Alabama
  • Troy University
  • University of North Alabama

Alabama’s higher education system offers new and expanding companies access to excellent workforce training, state-of-the-art technology and innovation at the state’s leading engineering and research schools. Alabama’s institutions of higher education are strategically located throughout the state, providing Alabamians with educational opportunities to meet the emerging needs of citizens and industry.

Four-Year Institutions with IT Programs

  • Alabama A&M
  • Auburn University
  • Tuskegee University
  • University of Alabama
  • University of Alabama at Birmingham
  • University of South Alabama
Blair King
Blair KingSenior Project Manager