Fairbanks planning staff back data center pause and urge a 40,000-square-foot threshold

Fairbanks North Star Borough planning staff recommend approving Mayor Grier Hopkins' proposed pause on large data center permits, with two changes. One would lower the size threshold from 50,000 square feet to 40,000, reaching smaller buildings.

The Planning Commission takes public testimony on the ordinance Tuesday, Nov. 10, at 6 pm in the Mona Lisa Drexler Assembly Chambers.

Hopkins proposed the pause in October, as Alaska News reported Oct. 15. Under the ordinance, the borough would accept no new land use permit applications for large-scale data centers, and approve none already pending, through Dec. 31, 2027, unless the Assembly ends or extends the pause sooner. The planning department would have six months to report on impacts and recommend permanent rules.

The ordinance counts a facility as large-scale if it has peak demand or on-site generation of 5 megawatts or more, or more than 50,000 square feet devoted to data center operations. It says the pause would let the borough first assess impacts such as power demand, water consumption, noise and land-use compatibility.

In its staff report, the Department of Community Planning said it supports the pause to allow time to research, draft regulations and hold a public process. Staff want the size test to match the code's existing "large scale development" use, which sets 55,000 square feet for retail or wholesale buildings and 40,000 for entertainment facilities seating 800 or more. The threshold would also count gross floor area, meaning all floor space inside a building's outer walls.

"There have been inquiries received by the FNSB Community Planning Department on data centers potentially being developed in the community," the report said.

The borough's code has no definition of a data center and does not list it as a permitted or conditional use in any zone, staff said.

Staff said this pause would let the borough adopt its comprehensive plan, which has more draft goals on data centers, before writing permanent rules. The plan itself won't ban data centers.

Data centers drew many written comments on the draft plan. Sarah Dubowski Hollister, who wrote that she lives next door to a proposed data center lease parcel, asked the borough to "issue a moratorium on data centers until Title 18 can be updated." Title 18 is the borough's zoning code.

The Assembly sent the ordinance to the commission Oct. 22, with a recommendation due within 90 days. The Assembly has not set a date for its own vote.