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By Oliver Trapnell
Associate News Editor
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Alaska could be transformed into a major data center hub following a new assessment of natural gas resources in the region which appear big enough to power huge advanced computing and AI sites.
The state is becoming a new frontier for data centers due to its cold climate, available land and access to energy resources, making it a cheaper alternative to hubs such as Northern Virginia and Texas. Alaska currently houses at least six operational data centers, while several additional projects have been announced or proposed.
One of the proposed sites, Project Aaka, is set to become the largest in Alaska. Developed by STAK Energy, the 3GW natural-gas powered data center is due to be built in an established industrial corridor on the North Slope and recently announced a 15-year deal with ExxonMobil Alaska Production Inc to supply its gas. Newsweek has reached out to ExxonMobil by email.
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Why It Matters
In a first-of-its kind report covering the entire North Slope last month, the U.S. Geological Survey (USGS) estimated there could be as much as 96 trillion cubic feet (tcf) of technically recoverable, undiscovered natural gas resources on Alaska’s North Slope.
This is roughly three times the amount of known gas reserves on the North Slope, "or three years' supply for the U.S. at the 2025 rate of consumption," Alicia Lindauer, USGS Energy Resources Program coordinator told Newsweek.
STAK's chief development officer Kay Zinngrabe said the Project Aaka site will draw on fields that already produce but added: "The USGS estimate change adds further optimism for future expansion should demand for power generation continue to increase."
In addition to the data center usage, Alaska’s North Slope gas is already being eyed up for domestic and international markets as The Last Frontier’s $55 billion LNG pipeline to transport North Slope gas to Anchorage and beyond edges closer to overcoming its federal and financial hurdles.
Despite STAK Energy’s new data center drawing on the same North Slope supply as the pipeline, Zinngrabe brushed off any concerns.
"Nearly everyone on the STAK Energy team was born in Alaska or has lived here for many years. As Alaskans, we want to see both projects succeed as they both benefit the state’s economy.
"The latest USGS gas estimates reaffirm there’s enough North Slope gas to support both, and that’s a strong reason to move forward on each."
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Midterm Election Could Reshape Industry
Abundant gas supplies alone may not determine whether Alaska becomes a major computing hub. One of the state’s biggest roadblocks to new data centers could be determined by the as yet unknown Alaskan Midterms results.
Although current Alaska Governor Mike Dunleavy supports data centers in the state, two of the four candidates to replace him are critics of AI. Democratic candidate Jonathan Kreiss-Tomkins said he would seek to temporarily ban new computing data centers in Alaska if elected.
One of his Republican rivals Bernadette Wilson, said: "I will never allow Alaska to be littered with hyperscale data centers that take our resources and spoil our lands."
In the wake of the USGS report, Secretary of the Interior Doug Burgum hailed the state’s abundant resources and what they could be used for.
"Alaska is one of America’s greatest energy frontiers, and President Trump is committed to unlocking its extraordinary potential.
"Alaska’s natural gas reserves can supply affordable, reliable, secure energy to Americans and our South Pacific allies for generations, and this assessment helps underscore the importance of understanding these vast resources beneath the North Slope and using world-class American science to turn that potential into opportunity.
"By advancing responsible energy development, we can strengthen American Energy Dominance, create jobs and deliver lasting economic benefits for Alaskans and the entire nation."
Contact Newsweek editors on this story: Ben Kelly and Trevor Davies
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