Anchorage Assembly Adopts New Regulations for Future Data Center Development
The Anchorage Assembly has adopted an ordinance regulating data center development in the city, requiring public reviews and utility input. The rules, passed in a 10-2 vote, mandate landscaping buffers and restrict data centers to commercial and industrial zones. Developers must demonstrate utility capacity for power and water use. Small-scale data centers are emerging in rural Alaska, with potential benefits and risks for local infrastructure and communities. Data centers accounted for 4% of U.S. electricity consumption in 2024, expected to increase significantly by 2030.
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The Anchorage Assembly approved a 10-2 ordinance to regulate data center development, marking the first zoning code definition for such facilities. The regulations include a public review process and require input from local utilities on energy capacity.
Landscaping buffers and enclosed equipment are mandated to minimize noise and visual impact. Data centers must be located in commercial and industrial zones, not residential areas. Current trends indicate large AI-focused data centers could consume as much electricity as 100,000 homes. Meanwhile, small data centers are developing in rural Alaska, with local officials evaluating their potential benefits and drawbacks.
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