Borough Requests Information From Data Center Companies

An open-ended request for information, or RFI, for companies building data centers and other large energy users is now open. Mat-Su Borough Purchasing Director Russ Krafft says the RFI is at the request of several assembly members who are seeing the facilities move into other states and want to know the Borough’s potential for hosting them.

According to Krafft, the Borough has already identified at least four areas that might be appropriate for data centers and other facilities, all located outside the core area, but so far, only in the Lower Valley. 

Borough staff identified areas that are bounded by existing and planned transportation corridors that might support the development. Krafft says a location near Hollywood and Vine roads in Wasilla is the closest to the core area. Another might be in the Goose Creek area near the prison or along Ayrshire North where the West Susitna Access Road will go. 

Cottage industries are well-represented in the Borough, but big industrial development is lacking, says Krafft. He does acknowledge that the Borough does not know the current electricity capacity to support large scale facilities like data centers that are known to use as much electricity as entire cities in some cases.

MEA Chief Strategy Officer Julie Estey says they have been looking at potential load growth as a strategy over the next ten to 20 years. That would help spread the costs of infrastructure growth over multiple years. Estey says that resource development, data centers, and military facilities are all being planned for Alaska.

MEA is still struggling to solidify the long-term gas supply and the transmission system is inadequate right now, according to Estey. However, she says MEA now has the ability to share loads with other utilities.

The Alaska State Legislature also is considering data centers and other industries that require larger loads. House Bill 259 looks to develop community plans to ensure that residents see benefits. Legislators are tracking what’s working and not working in the lower 48.

Krafft says the Borough has a capable work force as well as the towns to support these projects. He says they are not only looking for companies to respond to the RFI, but to also reach out to the Borough directly to discuss development possibilities.

He says the Borough has the land and community, and that they are open for business.