Karlapalem Called for Data Center Approval Votes
The Democratic candidate demanded public oversight for Alabama Power data center contracts.
Updated on Oct. 1, 2026 in Data Centers
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Democratic candidate Hanu Karlapalem has called for official Public Service Commission votes on new data center site approvals in Alabama. Karlapalem argues these measures are necessary to prevent potential ratepayer cost increases linked to new projects.
Why it matters
The push for transparency comes as Alabama Power seeks to utilize a rate schedule that allows contracts to receive automatic approval after 45 days. Critics argue this process effectively bypasses critical public oversight.
Alabama Power proposed a schedule where contracts gain automatic approval after 45 days without a commission vote. Publicly available copies of the three currently filed contracts have key details like pricing and contract length redacted.
The players
Hanu Karlapalem
He is the Democratic nominee for the Alabama State House District 4 seat.
Parker Moore
He is the incumbent Republican representative for Alabama State House District 4.
Alabama Power Company
The utility provider is responsible for filing data center contracts with state regulators.
The details
Hanu Karlapalem requested a one-year moratorium on new AI data center approvals, citing concerns that current processes shield Alabama Power agreements from scrutiny. While a new state law, Act 2026-610, took effect in October, contracts filed prior to that date remain exempt under a previous agreement.
Timeline
July 2026: Alabama Power and the commission reached an agreement on contract exemptions.
October 1, 2026: Act 2026-610 took effect across the state.
November 3, 2026: The Alabama State House District 4 general election is scheduled.
The Tech Race
The debate over data center approval processes follows the implementation of Act 2026-610, which governs how the state manages utility contracts for energy-intensive infrastructure. This effort to force public votes represents a pivot toward tighter regulatory control over the rapid expansion of AI-related digital infrastructure.
The potential approval of these contracts without public oversight could influence future utility rate structures for residents. Voters will have the opportunity to weigh in on the candidates' positions regarding these energy agreements during the general election on November 3.
The takeaway
Public demand for oversight highlights the tension between rapid utility expansion and ratepayer protection. Residents concerned about future energy costs should monitor the outcome of the local district election and potential future commission proceedings.
Further reading
Learn more about the infrastructure supporting the region in the Data Centers section.
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Should utility companies be required to disclose all contract terms for new data centers?
