Alaska Positioned as Prime Location for AI Data Center Growth

Energy experts told a sustainable energy conference Tuesday that Alaska has the space and energy resources to become a leader in artificial intelligence data center development.

The discussion came during a panel at the Alaska Sustainable Energy Conference. Speakers emphasized that data center growth could help modernize aging electrical infrastructure. David Groberg, a utility expert on the panel, said the nation's electrical infrastructure has suffered from decades of underinvestment. Data centers present a chance to reverse that trend.

"This is an opportunity to leverage some ginormous balance sheets to be able to reinforce the grid that will pay dividends for years to come," Groberg said.

Arizona State Senator Juan Mendez warned that misinformation campaigns have fueled opposition to data centers across the country. The senator pointed to recent legislative battles in Virginia and Maine as examples.

"The amount of misinformation and disinformation being sowed whether from China or Russia or any of our other national adversaries is extraordinary," Groberg said. "But it is very important that we do that because this is absolutely a generational opportunity."

Mendez stressed the importance of early communication between utilities and data center developers. The senator said modern data centers either rely on zero water or less water than a traditional office building. The senator noted that in some jurisdictions, utilities structure data center power sales separately from consumer rates. That makes it impossible to shift costs to residential customers.

"Alaska is a prime location for the growth of this innovation and technology that makes all of our lives better," Mendez said. "You have got the space, you have got the energy to be a star in this area."