Continuing the Data Center Conversation: Read Our Whitepaper
How would data centers impact Alaskans? How might a data center affect our energy grid? If data centers are built here, are there ways to minimize environmental harms and maximize benefits for communities? These are just some of the questions we’re asking here at The Alaska Center as we look at the state of data center development across the country.
We’ve compiled current research and our observations about data centers in a whitepaper which we’re excited to share with you today. This document lays out potential areas of concern and policies to consider regarding environmental, public health, and economic impacts of data centers.
In a best-case scenario, a right-sized data center could help increase energy reliability and improve grid strength. However, if we fail to create strong consumer protections and strict environmental standards, data centers could end up harming communities with water, land, and noise pollution and push us backward in our shift to renewable energy. Over the last year, Alaskans have already faced multiple energy rate increases and an unchecked hyperscale data center could drastically increase the cost of energy.
To help us understand data centers and what’s possible at the legislative level, we hosted our Clean Power Happy Hour this month with Representative Mears and Senator Tobin. Rep. Mears is sponsoring a bill (HB 259) this session that will ensure community buy-in for “large energy use facilities” by establishing community benefit agreement requirements between the facility and the municipality where it is located. The bill also includes language to guarantee that the facility’s energy rates “fully compensate” the utility for all costs to serve it, allowing new development to progress provided that energy bills are not impacted for existing consumers.
Several different types of data centers have been proposed as development opportunities in Alaska. Governor Dunleavy has worked to recruit a hyperscale data center to become an ‘anchor tenant’ for his AK LNG pipeline project. Journalist Lauren Windsor writing for The Alaska Current reports that “Dunleavy has been wooing energy-intensive data centers to the state to increase energy demand to levels justifying the massive pipeline investment,” with pitch letters, scouting trips and tours of potential development sites.
Right now, a small-scale data center is being proposed in Wrangell by Greensparc, the same company that built a 150-kilowatt hydro-powered data center in Cordova. This month, the Wrangell Economic Development Board recommended the City and Borough Assembly move forward with a land lease for this new project, though multiple board members expressed that more community input is needed. If this is your community, you can attend the next borough assembly meeting on January 27 to make your voice heard.
The data center conversation is complex and changing. If data centers come to Alaska, we want to see responsible development that won’t damage communities through pollution, energy rate hikes, and unfulfilled promises — which we’ve seen happen across the country.
On the state level, the legislative session started this week and we’ll keep you updated about major developments and let you know how you can get involved.
For a sustainable future,
The Alaska Center
