MSB Assembly passes resolution to explore data center development

A resolution supporting a partnership between the Mat-Su Borough (MSB) and Terra Energy Center Corporation (TECC) was front and center at the March 3 assembly meeting, aimed at attracting large power-consuming industries and pursuing industrial diversification. By marketing specific, high-potential land for data centers, the borough looks to harness long-term energy infrastructure to drive economic growth and industrial innovation.

Resolution 26-019, sponsored by assembly members Ron Bernier and Dmitri Fonov, focuses on utilizing the TECC campus to provide secure, competitively priced baseload power, signaling a major push for economic expansion in the region.

Four areas of MSB-managed lands have been identified as potential for data centers, large power, or industrial areas, including Fish Creek parcels with approximately 3,435 acres, Ayrshire North with approximately 2,560 acres, Goose Creek with approximately 2,645 acres, and Hollywood Road with approximately 1,230 acres.

Currently, TECC holds a land use permit in the Port District for feasibility testing, aimed at developing an Advanced Manufacturing and Computing Campus for large-scale power consumers. Additionally, they intend to pursue a lease agreement for the Goose Creek parcels as outlined in the RFI.

Residents expressed strong opposition to this, citing potential noise pollution, high energy consumption strain it could put on the local grid, and the necessity for added power generation, as well as misuse of MSB time and money.

“I don’t want our Borough’s limited money used indirectly for employees’ time to be spent on a marketing campaign on a project that…has no infrastructure created to connect to the grid, no roads built, and also recently failed to land a $400M grant from an administration that is very much indeed prioritizing coal growth,” said resident Mary Claire McCarthy, who said she opposed data centers being built in the Mat-Su that could have an impact on natural resources that our vital to the economy and way of life.

Still others voiced concern that the government was partnering with a specific company, supporting and promoting them, and that industries seeking to do business in the MSB should do their own marketing.

Assembly member Michael Bowles unsuccessfully moved to pull the ordinance, expressing reservations about utilizing public funds after TECC failed to obtain a key grant. "I really don’t know if this is the best approach for the Borough," he stated, noting that despite the benefits of a robust industry, he remained skeptical of the current plan.

MSB Manager Mike Brown stated that the borough frequently engages in business development that does involve some staff time, committed to enterprises that may or may not lead anywhere, and that the resolution states the TECC would be marketing the lands made available in the RFI as previously directed by the assembly.

“We are not signing anything that’s binding by doing this resolution,” Brown told the assembly. “I don’t see this as a wide-ranging, time-consuming effort.” He later said that he wanted to allay fears that the Borough was taking actions unilaterally, saying “It does not work that way.”

Assembly member Max Sumner clarified that the resolution was exploratory, not a commitment to construction, and would require public process for any future proposals. He argued in favor of assessing potential options, highlighting that the property tax revenue generated by a data center would offer a substantial "boon" to residents by lowering overall tax burdens. He later said he did not know of any marketing campaigns that have endangered salmon or moose.

Assembly member Bill Gamble said he was not opposed to development or the possibility of data centers, but did voice concerns about the properties selected, stating that three of the four properties are in “population-sensitive areas.”

Brown clarified that MSB staff, rather than TECC, selected the parcels. This was due to a limited availability of Borough-owned land that met the project's requirements for scale and utility access. Given the need for large, contiguous plots, the selection was restricted by existing inventory rather than Terra’s preference.

Urging a "no" vote, Assembly member Stephanie Nowers warned that the TECC resolution equates to renting out borough staff, arguing that financial backing from the company comes with hidden expectations. She advised against allowing TECC to leverage the MSB’s reputation, stating that the Borough has no reason to tie itself to this specific company despite local opportunities.

As a self-proclaimed staunch conservative and conservationist, Bowles persisted with his opposition to the resolution, citing fears of monopolization, site location, and environmental impacts to pollution and wildlife. “I absolutely want infrastructure growth and industry growth, but not at the expense of our salmon. Not if it’s going to cause any damage to our waters.”

He requested a postponement of the ordinance and that TECC be present to address questions about data center technicalities, taxpayer benefits, and public concerns. “To me, the benefit does not outweigh the concerns of members of fellow residents of the Borough.”

Brown said it would be a good idea, stating that TECC has presented to the assembly in the past and it would give them the chance to defend themselves. Gamble added the caveat of postponing until mid-June to allow the assembly to focus on the budget and the agendas have been set; however when called to a vote, the motion failed, with members Gamble, Bowles, and Nowers supporting a postponement.

“We should get right on marketing this thing, see what our options are,” said Sumner, speaking to his opposition to wait.

Fonov emphasized that the MSB must find alternative revenue streams for roads and schools to avoid increasing the tax burden on residents, and described the partnership with TECC as a significant opportunity to market the MSB as "open for business" while minimizing costs to limited staff hours. According to Fonov, this resolution signals that the MSB is open to diverse offers that foster economic growth, as well as getting the Borough “on the radar” when TECC participates in an upcoming conference where they could potentially market the MSB.

However, Bowles continued to express concern, arguing that the ordinance's current language restricts discussions to a single company, effectively creating a monopoly. Bowles urged the Assembly to look for multiple sources to attract industry and infrastructure, cautioning against a rushed decision. “The borough prides itself on being a place where people live and don’t have to deal with pollution, and they’d like the Borough to keep its personality, and I agree with them.”

The resolution ultimately passed, with members Bowles and Nowers opposed.