Anchorage Assembly preemptively adopts data center regulations

The Anchorage Assembly proactively adopted new zoning regulations for data centers in a 10-2 vote, despite no large-scale facilities currently existing in the municipality. The ordinance, sponsored by Vice Chair Anna Brawley and member Daniel Volland, defines data centers in the zoning code for the first time, establishing a public review process and requiring local utilities to confirm sufficient capacity for increased energy and water demands. Assembly members Scott Myers and Keith McCormick voted against the measure. The new rules mandate landscaping buffers and enclosed power equipment to mitigate noise and industrial appearance, permitting data center construction only in commercial and industrial zones. Developers must secure written statements from electrical and water utilities confirming system capacity. Vice Chair Brawley emphasized learning from other communities, noting that large AI-focused data centers can consume as much electricity as 100,000 households. Separately, the Matanuska-Susitna Borough Assembly recently overrode Mayor Edna DeVries' veto to approve a resolution partnering with Terra Energy Center Corp. This initiative aims to attract high-energy-use developments, including data centers, to areas like Port MacKenzie and Big Lake, with the expectation of generating property tax revenue and creating jobs. Mat-Su Borough Manager Mike Brown stated they are reviewing other municipalities' policies, including Anchorage's new ordinance, as they have not yet received any data center proposals. Environmental concerns, such as increased energy bills and pollution, were raised by Jenny Hyde of The Alaska Center, which also published a study indicating data centers could account for a significant portion of US electricity consumption by 2030.