AIDEA board approves new subsidiary to build Alaska fiber links

The Alaska Industrial Development and Export Authority board voted unanimously on Oct. 21 to create Northstar Fiber Development LLC, a subsidiary set up to invest in fiber networks connecting Alaska to Asia and other markets.

The vote adopted Resolution No. G26-11, which authorizes up to $75 million for subsea and terrestrial cable systems, landing stations, backbone and middle-mile networks, and related capacity. The resolution requires a full project finance plan, due diligence, and certification before any binding commitment, plus regular reports to the board.

The resolution does not name a project, partner, or route. It requires that any investment deliver capacity landing in Alaska and available to Alaska residents, not capacity that passes through the state without stopping.

Governor Mike Dunleavy said Alaska can repeat its record in other forms of transport. "Alaska has always been at the crossroads of the world," he said. "We can prove it again with fiber infrastructure. This action positions Alaska to be a secure, American gateway for global connectivity." Ted Stevens Anchorage International Airport handled more than 3.8 million metric tons of cargo in 2025, making it North America's busiest cargo airport that year and third worldwide.

AIDEA Board Chair Bill Kendig said the agency was established to finance infrastructure the state needs. "This resolution gives us a disciplined tool, with clear limits and strong Board oversight, to help move Alaska from the end of the line to the center of the network," Kendig said.

Industry analysts at TeleGeography project more than one million kilometers of new subsea cable will be built worldwide between 2026 and 2035, with the Northeast Pacific among the regions seeing the most construction. AIDEA Executive Director Randy Ruaro said route decisions made in the next several years will shape networks for decades. "Alaska offers secure, diverse American routes that strengthen resilience across the Pacific and, over time, the Arctic," Ruaro said.

The subsidiary work builds on federal Broadband Equity, Access, and Deployment funding already flowing into the state. Of Alaska's BEAD allocation of more than $1 billion, $629 million has been awarded to 15 providers for 29 projects covering more than 46,000 homes and small businesses, with about 70 percent of those locations expected to connect by 2028.

Thomas Lochner, director of the Alaska Broadband Office, said the long-haul and international fiber authorized by the board supports those local networks. "This investment in long-haul and international fiber authorized by the AIDEA Board of Directors helps make sure the networks we are building today stay fast, affordable, and reliable for decades," Lochner said.

AIDEA was established by the Alaska Legislature in 1967 as a public corporation to finance economic development, job creation, and infrastructure projects in the state.