Municipality of Anchorage
Anti-Data Center Policies
Anchorage allows data centers in some industrial zones, but requires conditional-use approval, studies, utility-capacity statements, noise controls, screening, and a 200-foot setback.
current law · Municipality of AnchorageWould establish a defined land-use category and conditional-use framework for data centers using at least 20 megawatts of electricity, with separate standards for small and large facilities, in specified nonresidential zones.Anchorage AO 2026-27(S) (2026)
What this means
The measure creates a clear path for data centers in some industrial zones, but requires conditional-use approval and costly studies and utility capacity statements. Noise limits, screening, and a 200-foot setback add meaningful hurdles, though they do not amount to a ban (conditional-use requirements and standards).
People behind it
- Assembly Vice Chair Brawley
Named sponsor of the ordinance and submitter of the Assembly memorandum.
- Assembly Member Volland
Named co-sponsor of the ordinance.
- Assembly Counsel’s Office
Prepared the ordinance.
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- Planning Department
Requested to research energy-intensive facility standards and recommend additional land-use regulations.
Restrictions & requirementsHide restrictions & requirements13
Data centers are classified as conditional uses in specified zoning districts, so they require approval through the conditional-use process rather than being allowed by right; the measure states that the listed districts are nonresidential.
Facilities must minimize visual and noise impacts through submitted elevations, architectural sketches, or sight-line studies.
Cooling, ventilation, power-generation, and other operational equipment must be fully enclosed unless the Director determines enclosure is not mechanically feasible; otherwise, the equipment and ground-level substations must be screened by a visually solid wall, building, or similar barrier.
A data center must include a visually differentiated main entrance that projects or recesses from the adjoining building façade.
Large data centers, defined as facilities with 2,000 or more servers, require L3 screening landscaping adjacent to residential zones; smaller data centers require L2 buffer landscaping, and the Planning and Zoning Commission may require additional screening.
A data center and its ancillary equipment must be at least 200 feet from residential or other sound-sensitive uses. The Director may waive this setback only for small data centers, meaning facilities with fewer than 2,000 servers.
A conditional-use application must include a noise-mitigation study covering projected and peak operating noise, sound-source location and directivity, building and topographic barriers, and—if construction is phased—both the proposed phase and ultimate buildout; operations must comply with the applicable municipal noise standards.
If the facility will draw power from the electrical grid, the application must include utility confirmation that sufficient capacity exists at peak demand and must document the facility's estimated peak electrical demand.
If the facility connects to public water or sewer, the application must include utility determinations showing adequate water quantity and pressure and adequate sewer capacity at peak operation; privately funded system upgrades may be required as permit conditions.
A wastewater utility statement that the project is likely to cause significant adverse impacts on the public sewer system or human health creates a presumption that the approval criterion is not met, which may be overcome only with clear and convincing evidence presented to the commission.
Facilities using onsite water or wastewater systems must demonstrate compliance with all applicable Alaska Department of Environmental Conservation requirements.
The application must provide evidence of adequate fire-detection and fire-suppression systems, including systems for onsite power-generation and energy-storage infrastructure.
The application must document anticipated onsite power generation and energy sources, possible return of excess power to the grid, water recycling, waste-heat reclamation, contaminant treatment, and other impact-mitigation measures.
Benefits & exceptionsHide benefits & exceptions12
Creates a specific data-center use category, allowing qualifying facilities that require at least 20 megawatts of peak electrical demand to be reviewed under defined zoning rules rather than being treated as an undefined use.
Allows data centers as conditional uses in specified industrial zoning districts in the Anchorage Bowl, Girdwood, Chugiak-Eagle River, and the old-code I-1, I-2, and I-3 districts; the measure states that these locations are not residential zones.
Allows accessory facilities and activities—including offices, power generation and storage, water storage and treatment, maintenance areas, and vehicle or equipment parking and storage—to accompany a data center.
Permits geographically dispersed buildings, equipment, structures, and other stationary infrastructure owned or operated by the same entity to be treated as one data center for purposes of the code.
Allows the Director to waive the otherwise required 200-foot setback from residential or other sound-sensitive uses for small data centers.
Exempts accessory uses from the data center design, landscaping, and setback standards in the use-specific standards.
Allows a public water utility to approve a project when sufficient water capacity and pressure can be provided through privately constructed and funded system upgrades imposed as a condition of the land use permit.
Allows a public wastewater utility to approve a project when sufficient sewer capacity can be provided through privately constructed and funded sewer upgrades imposed as a condition of the land use permit.
Allows data centers using onsite water and wastewater systems to proceed by demonstrating compliance with applicable Alaska Department of Environmental Conservation requirements instead of relying on public water and sewer systems.
Expressly recognizes onsite power generation and storage, water recycling, waste-heat reclamation, and related infrastructure as part of the data center use and requires applicants to document these systems and potential grid power returns.
Waives Planning and Zoning Commission review of the ordinance before Assembly action and waives the 21-day published notice requirement, while retaining the charter notice requirements.
Makes the ordinance effective immediately upon Assembly passage and approval.
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