Alaska Approves 50-Year Lease for Massive North Slope Data Center

Alaska’s Department of Natural Resources approved a 50-year land lease on Tuesday for a massive, natural gas-powered data center planned for the North Slope.

The decision paves the way for the “STAK Energy Campus,” a large-scale computing complex located near the Dalton Highway and the trans-Alaska oil pipeline. The project changes how the state manages its northern resources, as Alaska currently has no large-scale commercial computing data centers in operation.

The proposed development is expected to cost roughly $500 million in initial capital expenditures. According to the Department of Natural Resources, the long-term lease was granted to allow the private developers to recover their investment over the facility’s designed useful life.

“This proposed development presents circumstances that are, in important respects, without direct precedent in the State’s historical management of its lands and resources,” the DNR wrote in response to public feedback regarding the plan.

The mechanics of Arctic computing

Unlike the massive data centers found in the Lower 48, which often rely on intensive liquid cooling systems, the STAK Energy Campus will utilize the Arctic environment to manage heat. The facility is designed to be air-cooled, with modular computer buildings raised above a gravel pad to allow cold Arctic air to circulate both above and below the structures.

This design choice aims to mitigate the massive water requirements typical of high-density computing. The project's Cumulative Impact Analysis (CIA) suggests this method will lower the environmental footprint in a sensitive region.

“STAK’s Cumulative Impact Analysis (CIA) estimates that this approach will reduce direct operational water consumption by 90 percent or more compared to evaporative cooling at lower-latitude data centers,” the DNR wrote.

The campus will not be connected to the electrical grid that serves Alaska’s Railbelt. Instead, it will rely on a multi-gigawatt power plant fueled by natural gas produced locally on the North Slope. While the center will be self-sufficient, operators maintain the option to sell excess power to customers in the vicinity of Prudhoe Bay.

Economic stakes and workforce projections

The project will bring many workers during its development phase. The construction of the 715-acre complex is expected to require a peak workforce of up to 1,500 workers.

Once the facility is operational, it will transition to a smaller, specialized crew. The DNR anticipates that ongoing operations will employ between 50 and 150 permanent personnel working on rotating shifts.

The state intends to generate revenue from the site through several channels. The owners will be required to pay rent on the land and a fee based on the specific amount of electricity produced and consumed by the data center. These rates will be established following a market appraisal.

While the project is privately financed, the DNR said that it is not responsible for vetting the developer’s bank account. Regarding concerns about the company’s ability to fund the $500 million buildout, the division stated: “The Division is not … obligated to conduct a general corporate or financial investigation beyond what bears on the decision of whether the proposed disposal is in the best interest of the state.”

Local opposition challenges the DNR approval

The approval comes despite local pushback. Earlier this year, the DNR extended a public comment period and received more than 1,200 responses, the majority of which were expressed in opposition to the proposal.

Critics have raised several points of contention, ranging from the potential for greenhouse gas emissions to the impact of industrial noise on the quiet Arctic landscape. The DNR addressed these concerns in a 30-page response filed alongside the approval, though it noted the limits of its regulatory authority.

For instance, the division clarified that it does not oversee climate policy or emissions standards. “The Division is not the agency responsible for establishing or enforcing greenhouse gas emission standards, conducting statewide climate monitoring, or making technical determinations regarding the causes, extent, or future trajectory of climate change,” the agency wrote.

Noise is another factor for residents and travelers. The facility will be visible from the Dalton Highway at a distance of approximately one mile. Because it will operate a 1-3 gigawatt generation system, the continuous noise from turbines and cooling equipment could carry for several miles across the flat terrain.

The DNR countered this by noting the site’s location within an already active industrial corridor that connects Prudhoe Bay’s oil fields to the rest of the state. The facility will be situated 60 miles from the nearest inhabited town, and engineers have designed the buildings and a supporting gas pipeline to avoid impacting local caribou populations.

Project Metric	Estimated Value
Initial Capital Expenditure	$500 million
Peak Construction Workforce	1,500 workers
Permanent Operational Staff	50 to 150 personnel
Total Land Area	715 acres
Lease Duration	50 years

The path to construction remains long. While the land lease is a major milestone, the project still requires several additional permits, including a state air quality permit for the power plant and a federal wetlands permit. Construction is currently estimated to take six years.

The decision is not yet final. Tuesday’s ruling is subject to a 20-day reconsideration period, during which the project could face legal challenges in court.