Assembly overrides veto, advances data center-related partnership

What you need to know:

• The Mat-Su Assembly voted 6-1 to override Mayor Edna DeVries’ veto and advance a plan to partner with Terra Energy to market development of a data center or similar high-energy-use facility on borough land.
• The agreement creates a two-year partnership allowing Terra to use borough resources to seek developers, but does not commit the borough to selling land or approving a project; it is tied to a broader effort to support a proposed coal plant near Skwentna.
• The proposal drew public opposition and Assembly debate. DeVries said she vetoed the resolution because she believes it brings risk to the borough due, in part, to a lack of vetting for the company.

• Short on time but need the local news scoop? Get free weekly news in your inbox for Mat-Su, from Mat-Su.

PALMER — The Mat-Su Assembly voted this week to override a mayoral veto and move forward with a plan to help a private company find a partner to build a large data center or other high-tech facility on borough-owned land.

The Assembly voted 6-1 during its regular Tuesday meeting to override Mayor Edna DeVries’ veto, with Assembly member Stephanie Nowers voting no. Nowers represents District 2, which includes Palmer.

The resolution was initially approved earlier this month in a 5-2 vote, with Nowers and Assembly member Michael Bowles opposed. The override was requested by Assembly member Dmitri Fonov, who co-sponsored the resolution with Assembly member Ron Bernier. Fonov represents District 6, which includes portions of Palmer and Wasilla. Bernier represents District 7, which includes Meadow Lakes and Talkeetna.

The measure directs borough staff to work with Terra Energy Center Corp. to identify companies interested in developing a data center or other high-energy-use facility on borough land near Port MacKenzie, Big Lake or the proposed West Susitna Access Road.

The resolution establishes a two-year partnership between the borough and Terra, allowing the company to use borough staff time and resources. It does not require the borough to sell or lease land or commit to allowing a data center, according to a memo included with the measure.

The effort is intended to support Terra Energy’s parent company, Flatlands Energy, in seeking investors for a proposed coal-fired power plant near Skwentna, officials said. Information about that project was presented to the borough last year. Getting that project off the ground and securing funding requires also finding a large energy user to serve as an anchor customer, they said.

DeVries said she vetoed the resolution because it could expose the borough to risk by allowing a private company that has not been fully vetted to represent the borough to outside entities. She said the Assembly should first review the properties involved and determine whether it supports data center development.

Bowles said he changed his vote after learning more about the proposal from project experts and supporters. He said he now backs the plan because it could encourage development without committing borough funds or harming salmon.

“The data center is just a potential concept to help capture some of the energy and lower the cost of energy for Mat-Su residents," he said. "Two weeks ago, I was not educated, and now I am."

More than a dozen people testified Tuesday against building data centers in the Mat-Su. About three people spoke in support.

Debate between Assembly members and DeVries lasted about 40 minutes late Tuesday during a meeting that stretched to minutes before midnight. The exchange became heated as DeVries departed from typical procedure to engage directly in debate with Assembly members, at times interrupting them as she defended her position.

The discussion ended abruptly when Bowles called for a vote, cutting off remarks from Nowers.

-- Contact Amy Bushatz at contact@matsusentinel.com