Sitka proposal would require permits for data centers in five zoning districts

The Sitka Planning Commission will take public testimony Wednesday, Oct. 21, at 7 pm on a city proposal that would allow data centers as a conditional use in the Public Lands, Waterfront, Industrial, Gary Paxton Special and General Island districts. A conditional use requires a permit the commission can approve or deny.

Sitka's code does not now define "data center" or say whether the use is permitted, conditional or prohibited, according to the staff memo on the zoning change. The memo says the change does not propose prohibiting data centers, and it calls the five districts "a starting point for discussion only."

Sustainability Coordinator Bri Gabel and Planning and Community Development Director Amy Ainslie wrote that Sitka's islanded electric grid and limited land make it "not entirely unlikely" that a small-footprint, high-energy data center will be proposed. The memo says a 1-megawatt high-density center can need as little as 300 square feet, and that 1 megawatt can support 100 to 300 high-demand homes.

Two hydroelectric projects supply nearly all of Sitka's power, with diesel generators as backup. The city generated 120 gigawatt-hours of hydroelectricity in 2025, according to the 2025 electric utility annual report.

An April 2023 city energy study projected demand reaching 147 gigawatt-hours within five to 10 years under its modeled growth scenario and 206 gigawatt-hours under high electrification. It found existing resources sufficient for current needs but limited in meeting expected load growth.

The Sustainability Commission voted unanimously Oct. 5 to recommend that data centers be allowed only conditionally, never outright.

Petersburg is taking a different route. Its Borough Assembly voted Oct. 5 to have its manager draft an ordinance for a nine-month moratorium on certain data center developments while staff write zoning rules. At an August Planning Commission meeting there, Petersburg Community and Economic Development Director Liz Cabrera described the gap such rules address: "if there's nothing in place, then if somebody wants to put one on industrial property, there's nothing to stop them."

The Sitka hearing is at Harrigan Centennial Hall, and the Planning Office also accepts written comments.