A startup with Alaska roots wants to build a massive data center on the North Slope, closer to natural gas supplies it would use to generate the enormous amount of electricity the center needs. The proposed $500 million data center would support artificial intelligence and cloud computing, and the company has secured the state's preliminary approval to lease land off the Dalton Highway.
The trans- Alaska oil pipeline on Alaska 's North Slope , as seen from the Dalton Highway in August of 2016. A startup with Alaska roots wants to build a massive data center on the North Slope , closer to natural gas supplies it would use to generate the enormous amount of electricity the center needs.
Stak Energy's proposed $500 million data center -- with a footprint of more than a square mile -- would support artificial intelligence and cloud computing, according to preliminary approval to lease land off the Dalton Highway. The idea exists only on paper, but the company has secured the state's preliminary approval to lease land.
According to Northern Journal reporter Nat Herz, Stak Energy has suggested it would be able to avoid some issues that data centers in the Lower 48 have faced, such as significant demand on water, power, and resource use. On the North Slope, there is a huge supply of natural gas right now that's not being used, and the facility would be self-generating power off of this abundant resource.
Another comparative advantage is the below-freezing average temperature over the course of the year, which would result in 90% less water usage than a facility in the Lower 48. However, there are several hurdles, including the plan being on the North Slope and far away from other centers of industry in the state.
The company has not been forthcoming about whether they have customers or investors lined up for this product, and there are questions about the availability of natural gas turbines and the bandwidth and connectivity from the North Slope. The woman in charge, Sparrow Mahoney, grew up in Alaska and has had involvement in startup-type businesses and cryptocurrency. She has also brought on some people who were veterans of Alaska's energy and business world, indicating a serious and credible company.
However, raising the hundreds of millions of dollars needed to build a project like this remains a challenge
Stak Energy Data Center North Slope Natural Gas Artificial Intelligence Cloud Computing Bandwidth Connectivity Natural Gas Turbines Water Usage Resource Use Electricity Prices Alaska Dalton Highway Iditarod Cryptocurrency Startup-Type Businesses Sparrow Mahoney John Boyle Jim Shine
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