Can Mat-Su power its future with local energy?
Matanuska-Susitna Borough, Alaska, USAThu Apr 02 2026
Alaska spends a lot of time saying no to new energy ideas before really thinking them through. Every big project faces the same loud warnings—air will get worse, rivers will be harmed, salmon will vanish—no matter if it’s a road, a mine, or a power plant. But when you look closer, some projects might actually help the Matanuska-Susitna Borough grow its economy while keeping the lights on for homes and businesses.
The upper Susitna Valley isn’t a wild, untouched place. It has coal deposits and land already set aside for industry. A new study from the University of Alaska shows that building a modern plant—using local coal and biomass with carbon capture—could provide steady power at a cost that may not be much higher than natural gas. That matters because Cook Inlet’s gas supply is running low, and importing fuel is getting expensive. The plant could store most of its carbon underground, keeping emissions low. Better yet, it could free up existing gas for home heating instead of burning it for electricity.
A bigger question is what to do with all that extra power. Data centers need huge amounts of electricity, every hour of the day. Alaska’s cold air makes cooling easier, but these facilities also need reliable power. One idea is to set aside part of the plant’s output just for data centers, either through direct contracts or a separate power line. That way, the facilities pay for what they use, and regular customers don’t get stuck with higher bills. Any leftover power could be sold to utilities. If done right, this could bring in billions in private investment and create construction jobs—even if the long-term jobs aren’t huge.
Economic growth doesn’t happen by accident. Mat-Su has Port MacKenzie, a deep-water port built for industry. Other towns have turned data centers into major tax payers. Quincy, Washington, saw big gains from tech companies moving in. Northern Virginia’s economy grew fast thanks to them. Mat-Su could do something similar—if the power is there. But Alaska often shuts the door before the conversation even starts.
Of course, no project is perfect. Carbon capture isn’t magic, and pollution controls still matter. The study suggests emissions could be lower than importing liquified natural gas. Water use is another concern, but modern data centers use less water than older ones. Any plant would go through careful review before getting permits.
The real issue isn’t just about energy—it’s about avoiding surprises. Natural gas won’t stay cheap forever. Prices could jump when supplies drop between 2027 and 2030. Local fuels like coal and biomass could offer stability. With federal help for carbon storage, the costs might even out. But this isn’t about saying yes to everything. It’s about looking at the facts, setting rules, and making smart choices. The Mat-Su Borough has a chance to lead. It just needs to ask the right questions before saying no.
https://localnews.ai/article/can-mat-su-power-its-future-with-local-energy-f60a493f
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