The Alaska Industrial Development and Export Authority board of directors has voted to give the borough $7.8 million toward site preparation costs at the 6-Mile deepwater industrial property and also loan the borough $15 million toward design expenses for a possible privately owned shipyard on the borough-owned land.
The deal requires that the borough electric utility make available 2 megawatts of consistent baseload power to AIDEA, which, through a state-owned subsidiary, would “facilitate the development of data center capacity in Wrangell.”
The subsidiary, Alaska Data Corp., which AIDEA created in March, would commit to buy the full 2 megawatts. The municipal utility would sell the power at 15.5 cents per kilowatt-hour, about two cents above the rate it charges existing large commercial customers.
“That revenue is the pledged repayment source” for the $15 million loan, according to the borough’s presentation at the AIDEA board meeting.
The actual financial terms of any power sales agreement are subject to further negotiation, according to the resolution adopted by the AIDEA board.
The borough has been awarded a $31.2 million federal grant for site work — utilities, streets, extending power and shoreline stabilization work — at the former 6-Mile sawmill property, which the municipality purchased in 2022 for economic development opportunities.
The federal grant requires a local match of $7.8 million, which the AIDEA money will fully cover.
Assembly approval would be required for any agreement with AIDEA, Mayor Patty Gilbert said.
