DeepGreen proposes underwater data center in Cook Inlet

DeepGreen Cook Inlet SPV submitted a plan to the Federal Energy Regulatory Commission for an underwater data center in Cook Inlet. The proposal includes 330 to 350 marine hydrokinetic turbines on the seafloor off the Kenai Peninsula. The project also features 66 modular subsea compute hives integrated into the turbine array. A 3.5-mile armored subsea cable would connect the site to a landing area in the Nikiski Industrial Corridor. The company estimates the project will generate 100 megawatts of power annually.

The plan has drawn sharp criticism from local officials and environmental groups. Kenai Peninsula Borough Mayor Peter Micciche described the company’s approach as sloppy. He stated he has not received an email, letter, or phone call from DeepGreen regarding the proposal. Micciche said the borough is in the dark about a substantial offshore development.

Cooper Freeman of the Alaska Center for Biological Diversity called the project outrageous. He noted that no project of this size generating tidal energy has been proposed in the region before. Freeman warned that noise pollution from the data center could harm the endangered Cook Inlet beluga whale. The National Oceanic and Atmospheric Administration estimates that only about 300 whales live in this area.

The FERC filing details the project’s components. The subsea cable will land between the Agrium Kenai Nitrogen Operations and the Kenai Liquefied Natural Gas Plant. Support buildings will be included in the plan. Most of the generated electricity will power the subsea data center. Any spare electricity will be sent to the Alaska Railbelt Grid via a dedicated terrestrial substation.

Statewide, the number of proposed hyperscale data center sites is growing. The Northern Center, a conservation group, reported 20 such sites as of September. The U.S. Department of the Air Force is also offering 9,417 acres across Joint Base Elmendorf-Richardson, Eielson Air Base, and Clear Space Force Base for up to 12 commercial data centers. Governor Mike Dunleavy has supported data centers as an economic driver. He told the Alaska Beacon that the state has ample fresh water and land. However, he admitted the state lacks extra power capacity.

Micciche argued that the state has not kept pace with the technology sector. He said legislators and federal regulators are slow to adapt. The borough leaders plan to ask state lawmakers in Juneau to create formal oversight guidelines for commercial technologies on public lands and waters. Micciche said there is no existing body of law specifically for new tech, unlike oil and gas, which is covered by the National Environmental Policy Act and other regulations.

The Center for Biological Diversity filed to intervene with federal regulators on Sept. 1. The group aims to block DeepGreen’s preliminary permit. They warned that industrial-scale noise could damage the beluga population before state policy is written. Louis Wolfson, DeepGreen’s managing member, did not return calls or texts to the number listed in FERC filings. He told the Anchorage Daily News that subsea centers use less land and fresh water than land-based facilities.

DeepGreen filed an answer to opposing comments on Tuesday. The company stated that objections rest on a misconception that the preliminary permit authorizes construction. DeepGreen said the permit does not allow for seabed disturbance, turbine installation, cable dredging, or cooling water discharge. The company also said it does not establish navigational exclusion zones at this stage.

The filing notes the ecological sensitivity of Upper Cook Inlet. During the permit term, DeepGreen will coordinate study methods with the National Marine Fisheries Service and the Alaska Department of Fish and Game. Field surveys will follow observer guidelines and vessel speed restrictions. The company said it looks forward to working with the City of Kenai and the Alaska Energy Authority.