Alabama Candidate Sought Data Center Voting Reform
State house candidate requested public oversight for data center contracts as new legislation takes effect.
Updated on Oct. 1, 2026 in Data Centers
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Should utility companies be required to disclose all contract terms for new data centers?
Democratic nominee Hanu Karlapalem has called for Public Service Commission votes on all new data center site approvals across Alabama. The request follows the October 1, 2026 implementation of Act 2026-610.
Why it matters
The proposal aims to mandate transparency for energy contracts to protect ratepayers from potential cost increases. It addresses concerns over the automatic approval processes for high-demand infrastructure projects.
Alabama Power proposed a rate schedule that grants automatic contract approval after 45 days if the commission does not hold a vote. Current filings for three data centers contain redacted details regarding minimum bills and pricing.
The players
Hanu Karlapalem
Democratic nominee for Alabama State House District 4 who has advocated for mandatory public oversight of energy infrastructure contracts.
Alabama Power Company
The primary electric utility provider in Alabama currently seeking approval for data center rate schedules through the Public Service Commission.
Parker Moore
The Republican incumbent currently holding the Alabama State House District 4 seat.
The details
The Alabama Public Service Commission evaluates energy infrastructure through a formal filing system. Under a proposed automatic rate schedule, data center contracts bypass a commission vote if 45 days pass without official action. Karlapalem argues that current redactions in contract filings prevent public scrutiny of the costs associated with these developments.
Timeline
July 2026: Alabama Power and the commission reached an agreement on contract exemptions.
October 1, 2026: Act 2026-610 officially took effect.
November 3, 2026: Alabama State House District 4 general election.
The Tech Race
The push for oversight follows the enactment of Act 2026-610, which set the regulatory terms for energy infrastructure. This effort contrasts with the industry trend of expedited, often private, approvals for large-scale AI data center energy contracts.
Residents in districts affected by data center development may see changes to public transparency requirements as the November 3, 2026, election approaches. The outcome of the election and subsequent commission policy will determine whether energy ratepayers gain access to previously redacted contract details.
The takeaway
The conflict centers on whether energy utility contracts should remain subject to automatic approval or undergo public scrutiny. Watch for further commission filings related to the three existing data center contracts following the November 3 election.
Further reading
Learn more about local infrastructure trends at Data Centers.
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Should utility companies be required to disclose all contract terms for new data centers?
