Alaska Pushes for Data Center Investment
State plans gas pipeline and fiber expansion to attract developers seeking lower costs and new sites.
WASHINGTON, April 24, 2026 – Alaska’s low energy costs, cold climate, and planned infrastructure investments make it a strong location for data center development, Gov. Mike Dunleavy (R) said Thursday at Data Center World.
The state is advancing a natural gas pipeline that could deliver power at about five cents per kilowatt hour for industrial users, with construction expected to begin soon and gas flowing later this decade.
He said Alaska’s colder temperatures could reduce cooling costs, with facilities operating at a power usage effectiveness near 1.15, compared to higher levels in warmer states, saving operators significant costs over time.
Dunleavy said fiber remains the main gap in Alaska’s infrastructure. The state plans to expand connections linking Alaska to Asia, the continental United States, and Europe to support data transmission.
“We are going to embark upon a very robust fiber process so Alaska can become the center of data transmission for three continents,” he said.
The combination of new fiber and the planned gas line would provide the infrastructure needed to support large-scale data center development, he said.
Dunleavy said Alaska’s land ownership structure could simplify siting. “Ninety-nine percent of the land is owned by three landowners. It really decomplicates that,” he said.
“By 2031, you’ve got the gas line, you’ve got fiber, you’ve got a large acreage of land,” he said.
The state is working with communities near Anchorage to identify sites for development and streamline permitting as demand for computing infrastructure grows, he said.
He urged companies planning projects in the next several years to begin discussions with the state.
“If you’re going to build a data center in five years, you want to start talking to us now,” Dunleavy said.
