Assembly Work Session on Data Center Ordinance (AO 2026-27) – February 27, 2026
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Assembly Work Session on Data Center Ordinance (AO 2026-27) – February 27, 2026
The Anchorage Assembly held a work session on February 27, 2026, from 1:01 PM to approximately 2:00 PM to discuss AO 2026-27, an ordinance amending the municipal code to clarify the land use review process for data centers and similar energy-intensive facilities. The session was co-sponsored by Vice Chair Riley and Member Voland. The discussion focused on the characteristics of data centers, their potential impacts, and the need for proactive regulation. No public testimony was taken, and no votes were held.
Discussion Items
- Presentation on Data Centers: Vice Chair Riley presented an overview of data centers, their rapid growth, energy and water use, noise impacts, and limited operational employment. She highlighted examples from other communities (e.g., Ohio, Virginia) where unregulated data centers caused utility rate increases and noise complaints.
- Gap in Current Code: The existing code defines "data processing facility" and "warehouse" but does not adequately address modern data centers. The ordinance would create a new use category, allow data centers only in industrial zones (conditional use), and require 200-foot setbacks from residential areas, visual screening, noise mitigation studies, and utility capacity confirmation.
- Definition and Threshold: The ordinance initially uses 20 megawatts of electricity as a threshold for large facilities. Member Johnson questioned the scale of a 20-megawatt facility; Vice Chair Riley noted the threshold came from state HB 259 and considered removing it or using a server count instead. Member Constant pointed out that the municipal code already requires large power users to demonstrate utility capacity (marijuana code precedent).
- Energy and Environmental Impacts: Member Baldwin Day asked about air quality impacts and whether data centers could be required to use renewables. Vice Chair Riley noted that state bills (SB 250, HB 259) address utility and renewable commitments, but local land use authority is limited. Members discussed potential tools like tax incentives (Chapter 12.75) or a consumption tax to fund infrastructure and renewables.
- Economic Development vs. Regulation: Member Constant emphasized that the ordinance is not an attempt to block economic development but to ensure thoughtful siting and public input. He cited a slide showing a data center built directly adjacent to a residential cul-de-sac as an example of why setbacks are necessary.
Key Outcomes
- No Formal Action: The work session was informational; no votes were taken. The ordinance is scheduled for a regular meeting on Tuesday, March 3, 2026.
- Refinements Identified: The sponsors will consider lowering or removing the 20-megawatt threshold, exploring renewable energy requirements, and incorporating utility capacity verification similar to the marijuana code.
- Next Steps: The Planning Department is requested to develop use-specific criteria for energy-intensive uses. The ordinance waives referral to the Planning and Zoning Commission to expedite proactive regulation, but future research and adjustments are anticipated.
Meeting Transcript
So um okay. Hello, everybody. We'll go ahead and get started today. Is February 27th? We're on the record from one to two. It's 101 p.m. right now. We're here to discuss AO 2026-27, which is an ordinance anchorage assembly amending Anchorage Municipal Code, Chapter 2105, 2140 Old Code, and 2150 Old Code and sections 2109050, 2110050, 2135020 old code to clarify the land use review process for data centers. And similarly, similar energy intensive facilities and requesting the planning department to develop use specific criteria for energy intensive uses and waiving planning zoning commission. We'll start with introductions, Ms. Baldwin Day. Aaron Baldwin Day. Zach Johnson. Daniel Bolland. Anna Brawley. Christopher Constant on the phone, Mr. Martinez. Present. Thank you. All right. Thank you. So this work session was requested by the sponsor, the vice chairman's probably go ahead, Ms. Riley. Yeah, thank you. And we'll talk a little bit about the ordinance itself. So this is co-sponsored by myself and member Voland. And the first part of the presentation, we're going to back up from what this ordinance does and really just talk about data centers because we know this is a hot topic. Many other communities are actually further along than we are because they've seen a lot of construction. We're uh more in the potential future potential uh category, but um helpful to understand what these facilities are, and that sets the stage for why we might want to regulate them. So next slide, please. Um so again, what are data centers? Why is everyone talking about them? Next slide again. Um, so a data center is um really, and I saw this phrase multiple times, powering the internet. So it's really a facility with a bunch of computers in it that is either running uh potentially an artificial intelligence model. Um, these have actually been around for a long time, cloud storage, right? A lot of different uses you can think of related to physical storage of data or physical data processing um that we uh utilize on our phones, on our computers, um, you know, all kinds of companies use these. Uh a company might have one themselves. There might be one that has multiple functions at the same site. So they look like a lot of different things. But essentially, from a land use perspective, they are a building or multiple structures that have a lot of computer servers in them. Um that requires uh a cooling system of some kind, often water-based, um, but other models um because you know, those servers, especially when they're together and there's a lot of them, generate a lot of heat. Um, they also use a lot of energy, of course. And so uh often there can be energy generation on site. Maybe it's a backup generator, maybe it's a renewable energy um uh system. And then they might have bad uh backup battery storage as well. So there's those pieces. And then of course, because it's a very large building, um, you might have offices, parking, storage, right? The kinds of things you would think of it as an industrial facility. Uh next slide, please.
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