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Regbase

The Data Center Divide

Sitka City and Borough

Pro-Data Center Policies

Alaska allows municipalities to exempt or defer taxes on qualifying development property by ordinance, subject to eligibility rules and possible objections. State support can cover early data-center reviews, but not construction or project approval.

Rating and summary from Alaska statewide as there are no scored current or future laws outside temporary restrictions for Sitka City and Borough.

Specific to Sitka City and Borough only.

pending · County measure
Identifies a discussion of data center zoning-code provisions on the October 5, 2026 meeting agenda, but does not state the substance of any recommendation or its potential requirements, affected parties, exceptions, or thresholds.Sitka Sustainability Commission recommendation on data center zoning (October 5, 2026)

Sources

pending · County measure
Would amend Sitka General Code Title 22 to define “data center” and establish its zoning-use status across all zoning districts, as set out in the proposed ordinance.Sitka Planning Commission recommendation on data center zoning (October 21, 2026)

What this means

The proposal would let data centers apply to operate in some zones, but only with conditional-use approval, and they would not be allowed outright anywhere. That adds some delay and uncertainty and limits eligible locations, though it also creates a clear path for applications where the zoning code currently has no data-center rules (conditional-use designations).

People behind it

  • Identified as the sponsor of Ordinance No. 2026-XX.

  • Unanimously recommended approval of the zoning text amendment defining data centers and assigning their zoning designations.

Restrictions & requirementsHide restrictions & requirements4

  • The ordinance would require a conditional use permit for data centers in the five zoning-district columns marked “C” in the manufacturing/storage uses table; “C” means a conditional use permit is required.

  • Data centers would not be permitted in zoning districts whose table entries are blank or otherwise do not authorize the use, effectively prohibiting them outside the designated conditional-use districts.

  • Conditional data-center uses in the General Island and Large Island districts would be considered case by case and would not necessarily be approved.

  • A data center located in an industrial district would be subject to the requirement that industrial uses not be noxious or injurious to nearby properties because of smoke, dust, refuse, odor, gases, fumes, noise, vibration, or similar conditions.

Benefits & exceptionsHide benefits & exceptions2

  • Adds a zoning definition for “data center,” covering facilities that process, store, or transmit digital information and use environmental-control equipment for servers or other high-performance computing equipment; the definition allows either a standalone facility or one within a larger structure. It excludes ordinary server rooms used with another permitted or conditional use.

  • Adds data centers to the manufacturing/storage use table as a conditional use in the zoning districts identified in the table. This allows a data center to seek a conditional use permit rather than treating it as an unrecognized or prohibited use, subject to Planning Commission review and the applicable conditional-use requirements.

Sources

pending · County measure
Would close a zoning-code gap by defining “data center” and assigning data-center use designations across Sitka’s zoning districts, while allowing the use only conditionally rather than outright in any district (zoning-text amendment recommendation).Sitka Sustainability Commission recommendation on data centers (2026)

What this means

The proposal would allow data centers only through conditional-use approval in listed zones, rather than permitting them outright, creating extra review and possible delay for new or expanded facilities (“Data center C C C C C”). It adds no direct operating rules, and small server rooms serving other local uses are excluded from the definition (“is not a server rack or room”), so the overall effect is a meaningful but limited development barrier.

People behind it

  • Identified as the ordinance sponsor.

Restrictions & requirementsHide restrictions & requirements3

  • A data center requires a conditional use permit rather than being allowed outright in the zoning districts where the ordinance marks it “C” in the Manufacturing/Storage Uses table.

  • Data centers are not authorized as a permitted use in any zoning district under the proposed table; districts without a conditional-use designation would not allow the use.

  • The ordinance’s definition excludes a server rack or room used to store or access data locally in connection with another permitted or conditional use, so facilities outside that exception are regulated as data centers.

Benefits & exceptionsHide benefits & exceptions3

  • Creates a formal “data center” land-use category in the zoning code, allowing proposed facilities to be evaluated under an established regulatory framework rather than being unclassified.

  • Allows data centers as conditional uses in the zoning districts listed in the ordinance’s Manufacturing/Storage Uses table, so facilities may seek approval through the conditional-use process instead of being prohibited outright. Approval remains subject to a conditional-use permit and applicable review requirements.

  • Excludes a server rack or room used to store or access data produced locally in conjunction with another permitted or conditional use from the data-center definition, allowing those incidental computing facilities to continue under the underlying use without being regulated as separate data centers.

Sources

pending · County measure
Proposes amending Sitka’s zoning code to define data centers and establish where they may operate across the City and Borough of Sitka.Sitka ZA 26-05 (2026)

What this means

The proposal would require a conditional-use permit in the listed districts, adding review and possible delay, and would not allow data centers outright; the draft lists conditional use. It does not ban data centers or set new operating limits, but the permit requirement and limited siting options are meaningful barriers; staff describes the goal as community review and case-specific considerations.

People behind it

  • Listed as the sponsor of Ordinance No. 2026-XX.

Restrictions & requirementsHide restrictions & requirements2

  • Data centers are designated as conditional uses rather than outright permitted uses in the zoning districts marked “C” in Table 22.16.015-5. Building or operating one in those districts therefore requires a conditional use permit and case-specific review.

  • The ordinance does not assign a permitted-use designation to data centers in any zoning district; districts without a “C” designation in the table do not receive authorization to establish a data center under this amendment.

Benefits & exceptionsHide benefits & exceptions3

  • The ordinance formally recognizes a data center as a zoning use, covering facilities with electronic equipment and environmental controls for servers, high-performance computing, or data storage devices. This establishes a defined category through which a facility can seek zoning approval. defines “data center”

  • The manufacturing/storage use table assigns data centers conditional-use status in five listed zoning-district entries. This allows a proposed data center to apply for a conditional use permit rather than treating the use as prohibited, subject to the applicable review and approval requirements. Data center C C C C C

  • The definition excludes a server rack or room used to store or access data produced locally in connection with another permitted or conditional use. Those smaller, locally associated installations therefore are not classified as separate data centers under this amendment. A data center is not a server rack or room

Sources

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