Bounding Volume Hiearchies

After some initial research..I'm liking the sound of an AABB tree to sort my static objects. I do some early notes on the subject after going through my Ericsson book on collision detection. Its seems simple enough. I am not sure if there are too many nodes to test in that will cause problems down the road. I do knowI need to implement a circle bounding volume to my other bodies so that even an OBB test can be avoided if possible.