A 50-Year Bet on the North Slope: What Alaska Approved for STAK and What Comes Next

by | Nov 11, 2026

On November 10, 2026, the Alaska Department of Natural Resources approved a 50-year negotiated lease for STAK Energy Corporation’s proposed North Slope energy and data center campus.

The State has now committed approximately 715 acres of public land to a project that could ultimately support up to three gigawatts of electric generation for hyperscale data centers, artificial intelligence computing, cloud computing and related industrial uses.

DNR says the project could create jobs, generate lease and tax revenue and establish a new market for North Slope natural gas. At the same time, major questions remain about the actual economic return to Alaska, the project’s final wetland and habitat footprint, water use, fish and wildlife impacts, subsistence, permafrost, air pollution and who will ultimately finance and use the campus.

How we got here

STAK first submitted its state land lease application on November 21, 2025, the company originally proposed a natural-gas-powered commercial data center. In March 2026, STAK revised its application and expanded the project description, including increasing the expected peak construction workforce from up to 500 workers to as many as 1,500 and changing the name from the “STAK Energy Datacenter Project” to the “STAK Energy Campus.”

DNR issued a Preliminary Decision on May 12, 2026 proposing to grant STAK a 50-year negotiated lease, the initial public comment deadline was June 15. After members of the public asked for more time to review the project, DNR extended the comment period through July 17. In total, DNR received 1,205 public comments.

Those comments raised concerns about economics, corporate transparency, water, wetlands, fish and wildlife, caribou, subsistence, air pollution, climate emissions, permafrost, traffic, noise, lighting, gravel extraction and reclamation. After reviewing those comments and negotiating further with STAK, DNR modified the preliminary decision, Entry Authorization and proposed lease. On November 10, DNR Commissioner John Crowther signed the Final Finding and Decision approving the 50-year lease.

What the State approved

The lease covers approximately 715.4 acres near Milepost 390 of the Dalton Highway, about 26 miles south of Deadhorse. Under the final lease, STAK may develop an integrated energy campus with one or more electric generation facilities totaling up to three gigawatts. The electricity would support uses including hyperscale data centers, artificial intelligence computing, cloud computing and digital processing. The current project maps estimate an approximately 572-acre physical footprint, including about 555 acres associated with the main industrial pad. The campus would include large computing facilities, cooling systems, batteries, electrical substations, natural gas generation, backup power, control facilities and worker housing.

The economic case DNR is making

DNR’s decision relies heavily on the economic benefits it expects the project to provide.

The State identifies several potential benefits:

  • approximately $500 million in initial capital expenditures;
  • up to 1,500 construction jobs at peak buildout;
  • approximately 50 to 150 permanent jobs;
  • state lease revenue;
  • increased North Slope Borough property tax revenue;
  • additional work for contractors, transportation, engineering and support industries;
  • and a new commercial market for North Slope natural gas.

DNR also argues that the project could create value from natural gas that is currently reinjected or otherwise lacks a large commercial market. The project is designed as a behind-the-meter system, meaning the electricity would be generated and consumed on site rather than sold into the Railbelt or another Alaska utility system. At full buildout, STAK estimates the project could consume approximately 350 to 500 million standard cubic feet of natural gas per day.

But the economics are still incomplete

The State has approved the lease before the public knows several important financial details.

The final annual rent is still unknown

STAK must pay for a formal appraisal that will establish the fair-market annual base rent for the property, that appraisal has not yet been completed. The lease allows the rent to be reviewed and adjusted at intervals of at least five years, that means the State has approved a 50-year lease before the public knows exactly how much annual land rent the project will initially generate.

The State created a special power-based surcharge

In addition to the base rent, DNR created a “Compute Power Sales Surcharge, the surcharge is tied to how much electricity is generated on the property and delivered to data center or computing facilities. The rate increases through several tiers, but begins declining again at the highest levels of development. DNR says the structure is intended both to increase state revenue as the project expands and to encourage continued development toward full buildout.

How much value will Alaska actually receive in exchange for the land, natural gas and environmental impacts associated with the project?

We still do not know the major tenants or investors

The public also does not yet know which technology companies or data center operators may ultimately use the site. During the comment process, STAK characterized detailed information about its investors and financing as confidential and proprietary. That leaves open questions about who is financing the project, who will ultimately use the computing capacity and how much of the economic benefit will remain in Alaska.

Habitat, wetlands and fish/wildlife remain major concerns

The project lies within the Dalton Highway Corridor management unit, which is managed not only for transportation and infrastructure but also for habitat, recreation, subsistence hunting, fishing and gathering. DNR acknowledges that the project will cause long-term alteration of tundra and wetlands. The exact amount of wetland impact is still unknown because a final site-specific wetland delineation has not yet been completed. That means one of the most important environmental impacts of the project remains unresolved even though the lease has already been approved. If STAK fills jurisdictional wetlands, it will need additional authorization through the U.S. Army Corps of Engineers.

The surrounding landscape supports caribou and other wildlife and is used for subsistence, STAK has committed to construction timing restrictions during caribou calving periods and minimum pipeline clearances intended to preserve wildlife passage. But industrial development can still affect wildlife through habitat loss, fragmentation, traffic, noise, lighting, pipelines and increased human activity. Fish habitat may also be affected depending on where water withdrawals, wetland fill, drainage changes and road crossings occur.

Water remains unresolved

STAK says it intends to use dry-air cooling rather than conventional evaporative cooling, that could substantially reduce operational water demand compared with many large data centers. But the project will still need water for domestic uses, fire suppression, construction and equipment washing. The land lease itself does not authorize those withdrawals, STAK must separately identify water sources and obtain the required approvals.

What happens next?

The next phase will determine what this project actually looks like on the ground.

Reconsideration

People affected by the decision who submitted timely written comments may request reconsideration from the DNR Commissioner. Requests must be received within 20 calendar days of the November 10 decision.

The deadline is: November 30, 2026

DNR lists a $200 filing fee.

Requests may be submitted to: dnr.appeals@alaska.gov

The Final Finding also says an eligible person must first request reconsideration before seeking judicial review in Superior Court.

Natural gas pipeline

STAK has already signed a 15-year agreement with ExxonMobil Alaska Production Inc. to purchase natural gas for the proposed campus, but that agreement does not authorize construction of the pipeline needed to deliver the gas to the site. STAK must still apply separately to DNR for a pipeline right-of-way. That review should provide more information about the proposed route, gas source, wetlands, wildlife crossings, subsistence impacts, and STAK’s technical and financial ability to construct and operate the pipeline.

What can the public do?

The lease decision has been made, but there are still important ways to stay involved. People can:

  • request reconsideration if eligible;
  • watch for the natural gas pipeline application;
  • participate in Army Corps wetlands review;
  • comment on future water-use authorizations;
  • follow Alaska Department of Fish and Game reviews;
  • participate in DEC air-quality permitting;
  • attend North Slope Borough meetings;
  • ask DNR for transparency around appraisal, rent and subleases;
  • and continue asking who is financing and ultimately benefiting from the project.

NAEC is continuing to track the STAK Energy Campus and is preparing to challenge the November 10 decision through DNR’s reconsideration process.

We are also monitoring the next stages of permitting, including the proposed natural gas pipeline, water-use authorizations, wetlands review, air-quality permits, fish and wildlife impacts, and North Slope Borough decisions.

Our focus remains on whether the project’s claimed economic benefits justify the long-term impacts to public lands, habitat, water, fish, wildlife, subsistence resources, and North Slope communities. As new permits and public comment opportunities arise, we will continue working to keep Alaskans informed and engaged.