The borough wants a data center to plug into Wrangell. Better yet, it could even move into the unused formal hospital property.
Data centers are large hosting sites for multiple servers that provide computing power and storage for cloud-based service providers.
While at Southeast Conference, held in Ketchikan last month, borough representatives spoke with Sam Enoka, founder and CEO of Greensparc — a San Francisco-based technology company that specializes in setting up modular, small-scale data centers for cloud computing.
Enoka grew up around Fairbanks before leaving Alaska for graduate school. The company has Alaska-based investors.
Borough Manager Mason Villarma said many of the discussions at Southeast Conference were often about Southeast’s problems, so talking with Enoka to try and spur some economic growth was especially refreshing.
Enoka and other members of the Greensparc team are scheduled to travel to Wrangell for an Oct. 22 public workshop between the company and the borough assembly. Villarma said he hopes the workshop will help determine if the company is a good fit for the borough and vice versa.
The old hospital property is not the only facility Greensparc may consider for its data center, as it seeks large, shop-style buildings with high ceilings. Such facilities would also need to be capable of accommodating high-power usage.
The borough has been trying to sell the hospital property since SEARHC ended its lease and moved into its new medical center in 2021.
Villarma said he and Greensparc discussed — in addition to the old hospital property — the borough-owned cold storage facility that is mostly unused by Trident Seafoods or even renovating the covered outdoor basketball court by Evergreen Elementary School. The latter location has also been identified as a possible location for an expansion of the school district’s technical education programs.
While Villarma acknowledged that the arrival of a data center might not spur massive job growth in town, it would not be without its benefits.
“It’s about a $50 million investment for 1,000 square feet of servers,” Villarma said. “We would be able to make a more efficient power system and drop the price of power sales for consumers.”
He also noted the borough would see a “notable” increase in property tax revenue if a facility as substantial as a data center is on the tax rolls.
Another positive about bringing Greensparc, specifically, to town is “they are really into engaging with the school kids and trying to provide opportunities for a career in AI, IT and server maintenance,” the borough manager said.
This would not be Greensparc’s first Alaska-based data center. Earlier this year the company installed a center in Cordova, running entirely on hydroelectric power. The company has designated the majority of Southeast as an “opportunity zone” and sees the entire state as a viable place to grow its network of data centers.
According to a May study by Goldman Sachs, the recent artificial intelligence boom has skyrocketed national demand for data centers. The investment bank says the amount of electricity data centers consume could quadruple by the end of the decade.
The availability of hydroelectric power in Wrangell — and in much of Southeast — could be attractive to data center developers.
The workshop between borough officials and Greensparc employees will take place Tuesday, Oct. 22, at 6 p.m. at City Hall. The event is open to the public.
Reader Comments(0)