Opinion: Alaska’s data-center dreams need a reality check

Stan Jones, a former journalist, argues in an opinion piece for the Anchorage Daily News that Alaska's aspirations to attract data centers are unrealistic given current energy challenges. He highlights that Southcentral Alaska's large commercial users pay 14 to 17 cents per kilowatt-hour, significantly higher than states like Virginia (8.99 cents), Texas (6.12 cents), and Washington (6.61 cents), which are actively winning the data center race. Jones further points out that the Cook Inlet gas supply is tightening, potentially leading to demand outstripping supply as early as next year, making the region unsuitable for power-hungry new developments. He criticizes the political notion that the North Slope pipeline gas will resolve these issues, citing Wood Mackenzie's estimates that Phase 1 of the Alaska LNG project would deliver gas at $10 to $13.7 per MMBtu, higher than the current Cook Inlet price of about $8.69. He states that the full $60 billion export buildout, which could provide cheaper gas, is the least bankable part of the project. Ultimately, Jones concludes that Alaska cannot currently offer the competitive pricing and reliable, abundant power necessary for major data centers without imposing significant new costs on existing users, urging a realistic assessment of the state's energy situation before marketing itself as an AI frontier.