Why It Matters
Alaska’s Department of Natural Resources is evaluating a 50-year lease that could reshape energy development on the North Slope. The decision carries implications for the state’s power infrastructure, land use policy, and the balance between industrial development and environmental protection in one of the nation’s most remote regions.
What Happened
The Dunleavy administration is weighing approval of a massive data center and power generation facility proposed by Stak Energy, an Anchorage-based company. The lease would permit development of roughly one square mile on state land approximately 25 miles south of Deadhorse, just off the Dalton Highway.
The public comment period, initially set to close in mid-June, was extended to July 17 after the Alaska Department of Natural Resources received more than 500 submissions. The extension reflected the volume of public interest and requests for additional time to weigh in on the proposal.
Opposition has been overwhelming. Fewer than a dozen comments supported the project, while the vast majority raised objections. Critics included environmental groups such as the Northern Alaska Environmental Center, the Alaska Public Interest Research Group, and the Alaska chapter of Backcountry Hunters and Anglers. Comments also came from individuals across Alaska, with submissions from Kodiak, Kotzebue, Seward, Valdez, and Nuiqsut.
Stak Energy’s chief strategy officer, John Boyle—who previously served as Alaska’s natural resources commissioner from 2023 to 2025—characterized the opposition differently. “Our initial assessment is that the vast majority of the comments are form letters lacking substance other than reflecting an individual’s point of view,” Boyle said.
The project would not operate data centers itself but instead generate and sell power to major technology companies known as hyperscalers. If built, it would be Alaska’s first large-scale data center development.
By the Numbers
500+ — public comments received before the extended deadline
Fewer than a dozen — comments endorsing the project
More than $10 billion — estimated project cost
1 square mile — approximate project footprint
1 gigawatt or more — proposed power generation capacity
30% — how much more power the facility would generate compared to peak demand across urban Alaska’s entire electrical grid
12°F — average annual temperature at the proposed site
10% or less — water consumption relative to typical data center cooling requirements
50 years — proposed lease term
Regional Context and Site Characteristics
The North Slope, where oil industry operations have dominated for decades, sits hundreds of miles from Alaska’s urban population centers and remains disconnected from the state’s main power grid. Deadhorse, the nearest populated area approximately 25 miles north of the proposed site, functions as an industrial center with temporary work camps rather than a permanent community. No other cities or villages exist within a 50-mile radius.
The extreme cold climate creates operational advantages for data centers. The site’s average annual temperature of 12 degrees Fahrenheit would reduce cooling costs dramatically—the facility is expected to use 10 percent or less of the water that typical data centers require for temperature control.
Zoom Out
Data center development is accelerating across the country as artificial intelligence and cloud computing demand surge. States compete aggressively to attract these facilities, which generate tax revenue and jobs but also consume significant power. Alaska’s remote location, abundant potential for renewable and natural gas power generation, and cold climate make it theoretically attractive for such projects. However, environmental concerns and the state’s limited electrical infrastructure create obstacles.
The North Slope has long been a focus of competing visions for Alaska’s future—between resource extraction advocates and those prioritizing environmental preservation. This lease application reflects that ongoing tension.
What’s Next
The Alaska Department of Natural Resources will review all submitted comments before making a recommendation to the state. The extended deadline of July 17 gives the agency time to process the substantial public record. Approval would require state authorization of the long-term lease; any decision is likely to face continued scrutiny from environmental groups and affected communities.