Alaska State Profile
Last Updated: 9/15/26 — Updated Monthly
STATE OF PLAY
As of July 2026, Alaska had nearly 1 GW of clean energy operating or planned, enough to power an estimated over 170,000 homes. Alaska’s clean energy industry employs over 5,500 workers, a nearly 14% increase since 2020. Alaska is also home to eight planned or operating data centers, which require more power capacity than any current power plants in Alaska, and the state is already facing an impending gas shortage.
| KEY 2026 RACES | |
| AK-SEN | AK-AL |
ENERGY BREAKDOWN
- 32% of Alaska’s total energy generation came from clean energy in 2025, with wind power supplying 6% of the state’s renewable power, and solar accounted for 3%.
- As of July 2026, Alaska was home to .69 GW of operating clean energy capacity, enough to power an estimated 161,883 homes.
- As of July 2026, a further .029 GW of clean energy capacity was planned in the state, estimated to power 8,000 homes.
- As of June 2026, Alaska’s average residential electricity rate was 28.21 cents/kWh, up 5% from the year prior.
- As of June 2026, average electricity costs in Alaska are up 14% since Trump took office.
- Since 2025, at least five Alaskan utilities have enacted or proposed rate hikes totaling more than $141 million, affecting nearly 174,000 electricity customers and more than 152,000 gas customers.
- From August 2025 to August 2026, average utility bills in Alaska were up 9.8%.
- As of August 2026, Alaska was home to eight planned or operating data centers. Data centers require more power capacity than any current power plants in Alaska, and the state is already facing an impending gas shortage.
CLEAN ENERGY PROJECTS & JOBS
- Two new clean energy projects have been announced since the passage of the Inflation Reduction Act, and private companies have announced plans to invest $800 million in new clean energy projects in the state.
- In 2024, Alaska’s clean energy industry employed 5,505 workers, a 13.8% increase since 2020.
- The Trump administration has put three clean energy projects in Alaska on the chopping block.
| Clean Energy Projects Announced Since IRA Passage | ||||
|---|---|---|---|---|
| Project | Summary | Projected Jobs | Investment | Project Status |
| Shovel Creek Wind | In October 2022, Alaska Renewables proposed Shovel Creek Wind, a 200-megawatt wind farm located northwest of Fairbanks, Alaska. The company said the project would cost $800 million. As of March 2025, Alaska Renewables was collecting data for the site, which was expected to start producing electricity in 2028 | – | $800 million | Announced |
| Little Mount Susitna Wind | In October 2022, Alaska Renewables first announced Little Mount Susitna Wind, a proposed 250-megawatt wind farm northwest of Anchorage, Alaska. The wind farm was expected to generate enough power to meet 20 percent of electricity demand in Southcentral Alaska. As of March 2025, Alaska Renewables was collecting data for the proposed site. | – | – | Announced |
Additional projects threatened or canceled in the state due to threats to clean energy:
| Additional Threatened Or Canceled Clean Energy Projects | ||||
|---|---|---|---|---|
| Project | Summary | Projected Jobs | Investment | Project Status |
| Renewable IPP Clear Solar Farm | In February 2025, Renewable IPP announced it would no longer lead the development of a new solar farm in Clear, Alaska. Renewable IPP said the project was no longer profitable due to high costs and uncertainty over federal tax credits, which had been factored into the projected costs of developing the project. | – | – | Canceled |
| Renewable IPP Houston Solar Farm | In February 2025, Renewable IPP announced it would no longer lead development of an expansion of an existing solar farm in Houston, Alaska. Renewable IPP said the project was no longer profitable due to high costs and uncertainty over federal tax credits, which had been factored into the projected costs of developing the project. | – | – | Canceled |
| Renewable IPP Nikiski Solar Farm | In February 2025, Renewable IPP announced it would no longer build a planned solar farm in Nikiski, Alaska. Renewable IPP said the project was no longer profitable due to high costs and uncertainty over federal tax credits, which had been factored into the projected costs of developing the project. The proposed solar farm in Nikiski would have powered about 9,000 homes on Alaska’s Kenai Peninsula at a lower cost than natural gas, currently the leading generation source for the region, lowering electricity rates in the region. | – | – | Canceled |
Other projects in the state, started before the Inflation Reduction Act:
| Project or Company Name | Project Details | Project Status |
|---|---|---|
| Thermo-Kool of Alaska | Thermo-Kool of Alaska is based in Wasilla and manufactures cellulose insulation. | Operating |
| Graphite One | The Graphite One project plans to mine, process, and manufacture anode materials primarily for artillery and missile systems and the lithium‐ion electric vehicle battery market. The project is being developed in Nome and has around 50 on-site workers. | Announced |
| Insulfoam | Insulfoam has a manufacturing facility in Anchorage. | Announced |
| Willow Solar Farm | The Willow Solar Farm opened in 2019 in Willow. The project hired over a dozen people. | Operating |
| Golden Valley Electric Association Solar Farm | The Golden Valley Electric Association’s solar farm opened in October 2018 in Fairbanks. | Operating |
| Eagle and Kaltag Solar Projects | REF has two solar projects in the communities of Kaltag and Eagle. | Operating |
RELEVANT STATE NEWS
- Alaska Municipal League confronts Alaska’s future with data centers [KTUU, 8/27/26]
- Arctic drilling in Alaska won’t get environmental review in new proposal [High Country News, 8/26/26]
- Underwater data center proposed for Alaska’s Cook Inlet by East Coast company [Anchorage Daily News, 8/19/26]
- Alaska already has data centers, but will the Alaskan public turn against them? [The Alaska Story, 7/27/26]
- Data center critics flood Alaska land managers with opposition to North Slope project [Alaska Beacon, 7/6/26]
- Arctic Refuge Oil Draws Few Bids, Despite Trump’s Push for ‘Liquid Gold’ [New York Times, 6/5/26]
- Surging Alaska Temperatures Lead to Earliest Heat Advisory Ever Issued [Newsweek, 6/1/26]
- These Alaska villages were swept away by a typhoon. They’re fighting with FEMA to not rebuild in the flood zone [CNN, 5/19/26]
- Alaskan tribes, enviros sue over endangerment finding repeal [Politico, 4/9/26]
- Air Force Invites AI Firms to Build up to 12 Data Centers on Three Alaska Bases [Air and Space Forces, 4/11/26]
- The first US coal plant in a decade is on shaky ground [Politico, 3/20/26]
- Alaska Native Renewable Industries Builds Solar For Rural Communities [The Business Download, 3/17/26]
- Remote Alaskan Community Invests In Clean Energy Projects And Energy-Efficient Housing [Business Download, 3/5/26]
- Data centers powering the AI boom demand local energy. Anchorage Assembly members want to regulate them [Anchorage Daily News, 3/4/26]
- Interior residents see electric bills increase after cold snap [Alaska’s News Source Fairbanks, 2/1/26]
- Trump’s energy push faces a long road in Alaska [E&E News, 1/8/26]
- Utilities say Alaska needs an LNG import terminal. Consumers could end up paying for two. [Alaska Beacon, 11/24/25]
- Alaska Tests a Theory: Solar Farms Help Nearby Crops Grow [New York Times, 10/21/25]
STATE CLIMATE DISASTERS
- Between 2010 and 2024, Alaska saw seven billion-dollar extreme weather disasters. Since 2017, Alaska has received $504,544,068 in FEMA funding for disaster assistance.
- Alaska is the fastest-warming state in the nation, warming 4.3 degrees Fahrenheit since 1970.
- In April 2025, Alaska had a top-10 wettest April on record, and in September 2024, heavy rain led to a deadly landslide that killed one person in Ketchikan.
- Severe flooding from Alaska’s glacial break in 2023 would not have happened without climate change.