The state is considering handing nearly 20,000 acres of public land to Alaska’s economic development agency for a large industrial park. And Alaskans have until 5 p.m., Aug. 19 to weigh in.
What exactly are they proposing?
The Alaska Department of Natural Resources is proposing to convey approximately 19,950 acres of state land to the Alaska Industrial Development and Export Authority, or AIDEA, for what the agency calls a “multi-use industrial and energy development district.”
The proposed industrial development district could eventually include:
- A freight and logistics hub near the Alaska Railroad and Parks Highway
- Energy and utility corridors for electricity, natural gas and fiber
- Advanced manufacturing pads
- Development of scalable data centers
- Gravel and rock extraction
- Facilities supporting the industrial park such as equipment service depots and vendor yards
The roughly 30-square-mile parcel sits just north of Houston, with a road connecting the property to the highway about 1.5 miles north of Houston’s Three Bears.
AIDEA says the project could create construction and long-term operations jobs, attract private investment and diversify Alaska’s economy.
What could change?
The state’s Department of Natural Resources’ own preliminary decision acknowledges potential impacts of the proposed project.
Among them:
- Public access: Some state land, trails and areas traditionally used for recreation and travel could become inaccessible.
- Water: Industrial development—particularly large-scale data centers—could require significant water and infrastructure, affecting surface and subsurface water resources.
- Wildlife: Loss of habitat could lead to impacts on the fish and wildlife populations.
- Timber: The land would be removed from the state’s timber inventory.
- Trails and recreation: The area has a network of trails used for mushing, dog racing and other recreation, which has already become a concern for some local officials.
DNR states those impacts can be addressed through easements, restrictions, setbacks and future permitting.
It also argues that keeping the land in state ownership would mean the state would continue to pay for things like administrating timber sales, developing access roads, and maintaining existing access—while also dealing with costs associated with trespassing and illegal dumping.
And then there’s the data center
Data centers are rapidly expanding across the Lower 48, prompting concerns about impacts on nearby residents, the environment, and energy infrastructure. These concerns have led some states and communities to impose moratoriums or pause development. There is no moratorium on data centers in the Matanuska Susitna Borough or the state.
Data centers are only one potential use of this particular development. AIDEA specifically lists “scalable data centers” as a potential tenant.
Alaska is already home to a handful of data centers, according to the listings on the Data Center Map directory. And Gov. Mike Dunleavy has been encouraging companies to build more here.
How to comment
DNR is accepting public comment on the proposed land conveyance until 5 p.m. Aug. 19.
You can submit a comment online here.
Victoria Petersen is an Anchorage-based freelance journalist covering food, culture and climate.




