Columbiana officials, residents spar over proposed DigiHost data center’s water, noise and transparency

City officials and residents discussed plans for a data center on Industrial Parkway during public comment at a Columbiana City Council meeting, focusing on water use, noise, energy supply and whether the city had been sufficiently informed.

Mayor (name not specified) said the company, previously discussed in 2022 as DigiHost and now calling itself Digi Power X, purchased about 10 acres in the industrial park and has operated a small crypto-mining setup there. "They bought approximately 10 acres in our industrial park," the mayor said, adding that the company’s initial operation involved a small number of pods and was not generating audible noise from the road.

Residents and council members pressed for more specific facts about the company’s plans and potential impacts. One resident said, "these data centers destroy communities through noise, through the amount of water usage, and amount of electrical usage," and warned of falling property values. The mayor acknowledged community concern and said he had signed a nondisclosure agreement early in discussions but that much information is now public.

Why it matters: Data centers can demand large, steady supplies of electricity and water and can produce continuous mechanical noise from cooling systems; residents said they had not been adequately informed and called for a formal public presentation from the company. The mayor said Alabama Power has told the company it can provide a dedicated substation and that the company plans to own the substation, which the mayor said should prevent direct impacts to the city’s power supply.

Details provided at the meeting: the mayor said the planned facility would start at roughly 22 megawatts and could expand to about 55 megawatts depending on business needs; he characterized the Columbiana site as a tier-3, smaller facility. On water use, the mayor said company-provided calculations showed an initial use of about 3,000 gallons per day and a full-build estimate of roughly 11,000 gallons per day. He contrasted those figures with larger, anecdotal claims circulating in the community about far higher daily water use and urged verification: "initially, it will use 3,000 gallons a day," he said.

Local authority and process: council members and the mayor explained limits and levers of municipal control. The property is zoned for industrial use (M-2), and the mayor said the city’s ability to block a business that fits existing zoning is limited. He explained the city does not routinely approve business licenses at the council dais for every new enterprise, and that the company already holds a business license for its current crypto-mining operation assigned in 2022. If the company changes operations to a data-center model, the mayor said the business license would need to be amended and that the city can place conditions on licenses — for example, on water use or noise — and may withdraw a license for noncompliance: "we can put conditions... and then if they don't comply with that, we can withdraw their business license," the mayor said.

Jobs and footprint: council discussion noted earlier company statements about higher job counts have been scaled back as plans and technology changed. The mayor said earlier projections of dozens of jobs were reduced as the company revised its plans and as newer server technologies require fewer staff. He also described the current on-site operations as a small pod-based crypto-mining setup and said the company is demolishing an old foundry structure on the parcel as part of site work.

Next steps and requests: council members and residents asked the company to make a formal presentation to the public with technical data the city can review, including water and energy use, noise modeling, fire-safety planning and staffing plans. The mayor said he has been challenged to obtain more detailed information and that the city is continuing to verify company statements with Alabama Power and municipal utilities.

No formal council action was recorded on the item during the meeting; council members said they will pursue more information and may use licensing conditions if the company seeks to change the scope of its permitted operations.