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AK — State Policy Updated January 2026

Alaska

AIDEA Business Loans AIDEA Loan Participation Program State land use permits Air quality permits APDES wastewater permits

Overview

Alaska has no data-center-specific incentive programs, but Governor Mike Dunleavy has personally recruited major tech firms to build “data farms” in the state, emphasizing low-cost land and freshwater availability.[1][8] The pitch is tied to broader energy strategy: large data center demand could help justify a long-discussed natural gas pipeline.[8] Public debate is emerging around electricity supply constraints and the low job-creation profile of data centers.[9]

Incentives

AIDEA Business Loans

Alaska Industrial Development and Export Authority (AIDEA) offers direct loans for construction, expansion, and equipment purchases. These loans are not limited to data centers but can finance large facility builds.

  • Long-term financing available for eligible industrial and commercial projects[2]
  • Defined loan-to-value limits and application requirements[2]

AIDEA Loan Participation Program

AIDEA also runs a loan participation program that shares credit risk with private lenders, extending the term and reducing the cost of capital for major infrastructure projects.[3]

Requirements and Conditions

State Land Use Permits

Many large projects require approval from the Alaska Department of Natural Resources (DNR). The Division of Mining, Land and Water manages state land and issues permits, easements, and leases for activities on state-owned parcels, including North Slope and other remote areas.[4]

Air Quality Permits

Data centers with on-site generation, backup engines, or gas turbines must obtain air permits from the Alaska Department of Environmental Conservation (DEC) under 18 AAC 50. This includes construction permits, minor source permits, and operating permits with ongoing compliance reporting.[5]

Wastewater and Stormwater Permits

Facilities that discharge cooling water or industrial wastewater must secure authorization through the Alaska Pollutant Discharge Elimination System (APDES) program. DEC administers APDES permits and enforces discharge conditions.[6]

Oil and Gas Compliance

Data centers linked to gas-to-power or flare-gas cryptocurrency mining on the North Slope fall under Alaska Oil and Gas Conservation Commission (AOGCC) jurisdiction. Such projects must comply with Title 31.05 and 20 AAC 25 regulations.[7]

What to Watch

  • 2025-2026 legislative session for bills addressing data center energy use, cryptocurrency mining, or large-load utility rates. No specific legislation has been introduced as of January 2026.
  • Utility tariff proceedings to determine whether Alaska utilities will develop special large-load rates or interconnection rules for data centers.
  • Public debate on electricity supply and cost impacts, as local reporting highlights concerns about high energy demand and limited job creation from data center projects.[9]

Sources

[1] Governor Mike Dunleavy, “Dunleavy data center letters” (letters dated September 5, 2024), DocumentCloud, https://www.documentcloud.org/documents/25221180-dunleavy-data-center-letters/ (accessed 2026-01-07).

[2] Alaska Industrial Development and Export Authority, “Business Loans,” n.d., https://www.aidea.org/Programs/Business-Loans (accessed 2026-01-07).

[3] Alaska Industrial Development and Export Authority, “Loan Participation Program,” n.d., https://www.aidea.org/Programs/Loan-Participation-Program (accessed 2026-01-07).

[4] Alaska Department of Natural Resources, Division of Mining, Land and Water, “Lands Section,” n.d., https://dnr.alaska.gov/mlw/lands/ (accessed 2026-01-07).

[5] Alaska Department of Environmental Conservation, “Air Permit Program,” n.d., https://dec.alaska.gov/air/air-permit/ (accessed 2026-01-07).

[6] Alaska Department of Environmental Conservation, “Wastewater Discharge Authorization and APDES Program,” n.d., https://dec.alaska.gov/water/wastewater/ (accessed 2026-01-07).

[7] Alaska Oil and Gas Conservation Commission, “Statutes and Regulations,” n.d., https://www.commerce.alaska.gov/web/aogcc/StatutesandRegulations (accessed 2026-01-07).

[8] Alaska Beacon, “Data centers face growing opposition Outside. Gov. Mike Dunleavy wants them in Alaska,” Alaska Beacon, 2024-10-18 (published 2024-10-19), https://alaskabeacon.com/2024/10/18/data-centers-face-growing-opposition-outside-gov-mike-dunleavy-wants-them-in-alaska/ (accessed 2026-01-07).

[9] Alaska Beacon, “Data centers, which require massive amounts of energy and few jobs, have downsides for Alaska,” Alaska Beacon, 2024-11-04 (published 2024-11-05), https://alaskabeacon.com/2024/11/04/data-centers-which-require-massive-amounts-of-energy-and-few-jobs-have-downsides-for-alaska/ (accessed 2026-01-07).