Lawmakers raise legal concerns over Mat-Su industrial park and proposed land transfer
Lawmakers in Alaska are raising legal concerns over a proposed transfer of 20,000 acres of state land to the Alaska Industrial Development Export Authority (AIDEA) for an industrial park, which could potentially include data centers. They argue the transfer may violate the Alaska Constitution due to vague public purpose definitions. Concerns are also being raised about data centers exacerbating the state's energy shortage, with one Senator advocating for a moratorium on data center development.
Alaska lawmakers are scrutinizing a proposed transfer of 20,000 acres of state-owned land to the Alaska Industrial Development Export Authority (AIDEA) for a multi-use industrial and energy development district in the Matanuska-Susitna Borough, which AIDEA's application states could include data centers.
Alpheus Bullard, an attorney for the Alaska Legislature, issued a memo highlighting legal concerns, stating that the land transfer for "a public purpose" as required by the Alaska Constitution is unclear, particularly regarding the state's ability to ensure public interest once transferred. This legal analysis prompted five members of the Senate Resources Committee, including Chair Cathy Giessel, to send letters to Natural Resources Commissioner John Crowther, urging clarification and expressing concerns about vague project premises and the department's due diligence. They also wrote that the land conveyance could be invalidated due to legal and public interest issues.
Rep. Kevin McCabe, representing the district where the land is located, pushed back, asserting that AIDEA has no specific plans for data centers on the property and that such speculation should not impede the land transfer. McCabe argued that Mat-Su residents could benefit economically and should have a say in the project's progression. However, Senator Giessel reiterated the need for greater specificity from the Department of Natural Resources (DNR).
Giessel also voiced concerns about introducing large energy consumers like data centers into Southcentral Alaska, given the region's existing energy shortage. She supports a moratorium on data center development until new state laws are passed to govern their construction. DNR spokesperson Lorraine Henry confirmed the department is reviewing the legal analysis, lawmaker letters, and over 2,100 public comments, promising that any final decision will address feedback from the public, agencies, and Legislature.