Opinion: Energy and data centers present a real opportunity for Mat-Su

The Matanuska-Susitna Borough in Alaska is poised to become a significant hub for data centers and industrial investment, leveraging its cold climate and the potential for modern energy development. An opinion piece published in the Anchorage Daily News highlights the "Terra Energy Center," a proposed coal and biomass facility with carbon capture, as a key enabler for this economic growth. The University of Alaska Fairbanks conducted a study outlining how a 75 or 300-megawatt plant could produce dependable electricity at competitive prices, especially as Cook Inlet natural gas supplies dwindle. The project, estimated to cost between $1 billion and $3.6 billion, could also benefit from federal 45Q tax credits for carbon storage. A core concept involves dedicating a portion of the plant's output directly to large data centers at Port MacKenzie through long-term power agreements or dedicated transmission lines. Developers believe this approach could support multiple data centers, attracting billions in private investment and generating substantial property tax revenue, thereby strengthening the Mat-Su economy. Rep. Kevin McCabe, an Alaska state representative for House District 30, supports giving such proposals a serious look, noting that data center investments in places like Quincy, Washington, and Northern Virginia have brought major local tax revenue and economic activity. The article addresses common misconceptions, clarifying that modern carbon capture systems can significantly reduce emissions and pollutants, potentially making lifecycle emissions lower than imported LNG. It argues that the project would add firm generating capacity to the Railbelt grid, not strain it, and that data centers purchasing power separately would not shift costs to residential customers. Concerns about water use are also addressed, noting that newer data centers increasingly rely on air cooling and water recycling. The author advocates for evidence-based decisions, urging the Mat-Su Borough to evaluate the opportunity without rejecting it prematurely.