Former Senator Kyrsten Sinema Identifies Alaska as Prime AI Data Center Location

Former Senator Kyrsten Sinema told an Alaska energy conference Tuesday that the state is positioned to become a major hub for artificial intelligence data center development. She cited natural resources and engaged state leadership as key advantages.

Sinema co-chairs the AI Infrastructure Coalition with former Congressman Garrett Graves of Louisiana. She praised Alaska's potential for data center growth. The coalition was formed in February 2025 to coordinate national AI infrastructure buildout across technology companies, energy providers, and policymakers.

Sinema praised Governor Mike Dunleavy for his approach to positioning Alaska in the AI economy. Alaska officials have been courting data centers from major technology companies including Meta, Amazon, and Microsoft, according to a January 2026 white paper from the Alaska Center. That same report warned about impacts and policy tradeoffs associated with the buildout. It identified energy as the main national bottleneck for AI infrastructure expansion. It noted Alaska's energy resources as a competitive advantage.

The coalition works closely with the White House National Energy Dominance Council and with Interior Secretary Doug Burgum to shape policies supporting American AI development.

Venkat Banunarayanan, a National Rural Electric Cooperative Association representative, said data centers require four essential elements: land, water, power, and fiber connections. Alaska's cool climate offers efficiency advantages for data center cooling, similar to facilities built in Scandinavia. The state's experience operating independent microgrids also provides relevant expertise. Data centers function as microgrids with onsite generation and grid connections.

The Department of the Air Force announced in April 2026 that it was moving forward with actions to potentially build and operate advanced AI data centers at three Alaska installations: Joint Base Elmendorf-Richardson, Eielson Air Force Base, and Clear Space Force Station.

The Alaska Industrial Development and Export Authority approved a loan of up to $17 million to Greensparc in June 2025 for developing new data center infrastructure in Cordova.

David Terry, a National Association of State Energy Officials representative, said Virginia, Indiana, and Louisiana have developed successful policies supporting data center growth while protecting consumers. Virginia's experience with load flexibility and grid utilization offers lessons for other states, Terry said.

Terry said the opportunity is significant. He said Alaska is approaching it thoughtfully. He said he expects positive results.

Banunarayanan noted that data centers bring economic benefits including construction jobs, hospitality industry growth, and professional employment opportunities. He said workforce challenges remain a concern for attracting data center development.

Sinema said the growth of AI data centers in states like Virginia has decreased costs for consumers. It has provided tax revenue that has changed these communities. The revenue has funded additional fire and police services and schools. It has built more roads.

Panel participants emphasized the importance of reliability, affordability and early communication between utilities and data center developers. Terry noted that grid investment has been needed for decades with or without data centers. He said the country has underinvested in the grid for 30 to 40 years.

The coalition's goal is to ensure federal policies support American AI dominance.

The conference panel discussion took place as part of the Alaska Sustainable Energy Conference in Anchorage.