The Matanuska‑Susitna (Mat‑Su) Borough is fast becoming a hotspot for data‑center developers, thanks to its cold climate, deep‑water port and abundant industrial land. While the economic promise is real, many locals have voiced concerns about power costs, water use and impacts on property values. The solution, according to this opinion, is simple: the borough should write the rules first and involve residents in the process.
How the Assembly has acted so far
In March, the Assembly voted 5‑2 to task borough staff with marketing land to Terra Energy Center, a coal developer seeking a data‑center customer. Mayor Edna DeVries vetoed the move, noting that the sites had not been vetted and no conditional‑use permit had been considered. The Assembly overrode the veto 6‑1, effectively deciding to market land before establishing clear standards.
Later, the state approved a transfer of about 6,800 acres near Houston to the Alaska Industrial Development and Export Authority (AIDEA) for an industrial district that could include data centers. Residents submitted more than 2,300 comments, most opposing the transfer, yet the decision went forward.
Other actions—such as the University of Alaska’s lease of Port MacKenzie land to Terra without borough notification and the passage of HB 381, which would shift pipeline tax authority to the state—illustrate a pattern of reacting after decisions are made elsewhere.
Why a pause makes sense
A modest pause on facilities larger than 20 megawatts would give the borough time to study grid capacity, water usage, groundwater impacts, property‑value effects and tax‑revenue implications. This is not a ban; it is a prudent step to ensure that developers pay for any upgrades to the power grid or water infrastructure, protecting ratepayers and preserving family‑friendly neighborhoods.
Republican Governor Greg Abbott of Texas has taken a similar approach, halting approvals until utilities are audited and developers agree to fund grid upgrades. The Mat‑Su Assembly can follow that example without partisan rancor.
Key protections for a responsible ordinance
- Power: Data centers must bring their own power—whether coal, a small modular reactor or privately financed hydro—so the Railbelt ratepayers never foot the bill.
- Coal without carbon capture: The EPA has repealed the 90 percent capture mandate, and the capture system in Terra’s 2024 design reduced output by about a quarter. Dropping capture would allow a smaller plant to deliver the same power with roughly 25 percent less coal, avoiding costly pipelines.
- Water: Require closed‑loop or outside‑air cooling, set metered withdrawal limits and conduct baseline well‑water monitoring before construction.
- Infrastructure: Developers must fund any needed upgrades to roads, bridges or transmission lines, preventing the borough’s taxpayers from shouldering those costs.
Moving forward
The Assembly has shown it can listen—when residents organized around the Houston land transfer, the body changed course within two months. By adopting a clear, resident‑driven data‑center ordinance now, the borough can protect families, uphold constitutional property rights and ensure that any new industry truly benefits Alaskans.
In short, the Mat‑Su community should set the terms, not the developers. A transparent pause and a well‑crafted ordinance will let the borough reap the economic benefits of data centers while safeguarding the values that make this region strong.
Original reporting: Must Read Alaska (Anchorage) — read the source article.
