# 829 Acres, 20 Years, and a Notice That Named No Tenant > On January 30th the University of Alaska put 829 acres at Port MacKenzie up for lease on a notice that named no tenant. Published 2026-10-08 by Alaska AI. 9 slides. Canonical: https://alaskaaihq.com/archive/2026-10-08/ ## The story 829 acres. 20 years. The notice named no tenant. Terra Energy is the tenant. Signed in late May for 20 years. The lease describes the Terra Energy Center Campus as "a large-scale industrial park," with energy generation, transmission, storage and distribution among its uses, and lets Terra sublease to future tenants. An inholding in the borough's port. The four parcels sit inside the Mat-Su Borough's 8,000-acre port district. Borough officials weren't told before the university signed. Port manager Dave Griffin said it "blows my mind." Comment was asked on a notice that named no lessee and no use. Posted January 30th. Comments closed at 5 p.m. on March 2nd. The lease was signed in late May, per university officials. University land skips the best interest finding. Projects on university land are exempt from the finding the state requires for major actions on state land, per the Mat-Su Sentinel. $20,000 the first year. $586,000 once it operates. Then $60,000 a year in years two and three. Construction would begin in 2029, and the report gives no figure for that year. Operations are targeted for 2030, and rent would rise 2 percent a year to the end of the 20-year lease. The campus is part of a coal plan. Flatlands Energy plans a coal plant near Skwentna. DOE selected the project for $89 million in engineering funding for a planned 1,250 MW plant and lists data centers among the loads it would serve. The university's own information doesn't highlight data centers. The borough markets land with Terra. In March the Assembly overrode a veto 6-1 to court large power users with Terra, data centers among them. Officials expect Terra to seek about 1,000 borough acres near the port. Should a university land notice name its purpose before comments close? ## What we verified - The University of Alaska's land notice for the four Point MacKenzie parcels was posted January 30th. [University of Alaska Land Management](https://www.alaska.edu/ualand/public-notices/2026/2026.01.30%20Intent%20to%20Lease%20MS.PM.0001-2-3-4%20Public%20Notice%201.php), primary document, 2026-01-30. - Public comments on the university's intent to lease were due by 5 p.m. on March 2nd. [University of Alaska Land Management](https://www.alaska.edu/ualand/public-notices/2026/MS.PM.0001-2-3-4%20Public%20Notice%20and%20Disposal%20Plan%20Final.pdf), primary document, 2026-01-30. - The university's notice says the parcels will be leased at or above fair market value. [University of Alaska Land Management](https://www.alaska.edu/ualand/public-notices/2026/2026.01.30%20Intent%20to%20Lease%20MS.PM.0001-2-3-4%20Public%20Notice%201.php), primary document, 2026-01-30. - The university's public notice and disposal plan name no lessee and no proposed use for the land. [University of Alaska Land Management](https://www.alaska.edu/ualand/public-notices/2026/MS.PM.0001-2-3-4%20Public%20Notice%20and%20Disposal%20Plan%20Final.pdf), primary document, 2026-01-30. - Parcel MS.PM.0001 is listed in the notice at 369.34 acres. [University of Alaska Land Management](https://www.alaska.edu/ualand/public-notices/2026/2026.01.30%20Intent%20to%20Lease%20MS.PM.0001-2-3-4%20Public%20Notice%201.php), primary document, 2026-01-30. - Parcel MS.PM.0002 is listed in the notice at 80 acres. [University of Alaska Land Management](https://www.alaska.edu/ualand/public-notices/2026/2026.01.30%20Intent%20to%20Lease%20MS.PM.0001-2-3-4%20Public%20Notice%201.php), primary document, 2026-01-30. - Parcel MS.PM.0003 is listed in the notice at 60 acres in Section 23. [University of Alaska Land Management](https://www.alaska.edu/ualand/public-notices/2026/2026.01.30%20Intent%20to%20Lease%20MS.PM.0001-2-3-4%20Public%20Notice%201.php), primary document, 2026-01-30. - Parcel MS.PM.0004 is the west half of Section 26, listed at 320 acres, west of Port MacKenzie. [University of Alaska Land Management](https://www.alaska.edu/ualand/public-notices/2026/2026.01.30%20Intent%20to%20Lease%20MS.PM.0001-2-3-4%20Public%20Notice%201.php), primary document, 2026-01-30. - All four parcels lie in Township 14 North, Range 4 West, Seward Meridian, near Point MacKenzie. [University of Alaska Land Management](https://www.alaska.edu/ualand/public-notices/2026/MS.PM.0001-2-3-4%20Public%20Notice%20and%20Disposal%20Plan%20Final.pdf), primary document, 2026-01-30. - The four parcel acreages in the university's notice add up to 829.34 acres, matching the 829 acres reported as leased. [University of Alaska Land Management](https://www.alaska.edu/ualand/public-notices/2026/2026.01.30%20Intent%20to%20Lease%20MS.PM.0001-2-3-4%20Public%20Notice%201.php), primary document, 2026-01-30. - UA Land Management's Port MacKenzie page, last updated September 8th, totals the four parcels at 828.740 acres. [University of Alaska Land Management](https://www.alaska.edu/ualand/land/lease-land/port-mackenzie), primary document, 2026-09-08. - The Department of Energy lists Terra Energy Center Corporation of Anchorage for $89,000,000 in DOE funding under its coal recommissioning and modernization announcement. [U.S. Department of Energy](https://www.energy.gov/hgeo/project-selections-broad-agency-announcement-de-foa-0003605-restoring-reliability-coal-0), primary document, 2026-10-07. - DOE puts the Terra project's total value at $190,375,155, including $101,375,155 in non-DOE funding. [U.S. Department of Energy](https://www.energy.gov/hgeo/project-selections-broad-agency-announcement-de-foa-0003605-restoring-reliability-coal-0), primary document, 2026-10-07. - DOE describes the project as engineering and design of a 1,250 MW coal-fired baseload power facility with carbon capture in the Mat-Su Borough. [U.S. Department of Energy](https://www.energy.gov/hgeo/project-selections-broad-agency-announcement-de-foa-0003605-restoring-reliability-coal-0), primary document, 2026-10-07. - DOE says the plant's carbon capture system would capture more than 90 percent of its CO2, an estimated 8.26 million tonnes a year. [U.S. Department of Energy](https://www.energy.gov/hgeo/project-selections-broad-agency-announcement-de-foa-0003605-restoring-reliability-coal-0), primary document, 2026-10-07. - The DOE-funded project aims to complete FEL-3 Class 3 engineering in 2027. [U.S. Department of Energy](https://www.energy.gov/hgeo/project-selections-broad-agency-announcement-de-foa-0003605-restoring-reliability-coal-0), primary document, 2026-10-07. - The project description on DOE's page says it is positioned to provide baseload generation by 2031. [U.S. Department of Energy](https://www.energy.gov/hgeo/project-selections-broad-agency-announcement-de-foa-0003605-restoring-reliability-coal-0), primary document, 2026-10-07. - DOE's description names data centers among the loads the coal plant would serve, alongside utilities, military installations and critical mineral operations. [U.S. Department of Energy](https://www.energy.gov/hgeo/project-selections-broad-agency-announcement-de-foa-0003605-restoring-reliability-coal-0), primary document, 2026-10-07. - The Mat-Su Borough Assembly passed Resolution RS 26-019, supporting a joint marketing effort with Terra Energy Center Corporation to solicit interest from large power consumers including data centers. [Matanuska-Susitna Borough (Legistar legislative record)](https://webapi.legistar.com/v1/matanuska/matters/5876), primary document, 2026-03-17. - The Assembly overrode the mayor's veto of the Terra resolution on March 17th. [Matanuska-Susitna Borough (Legistar legislative record)](https://webapi.legistar.com/v1/matanuska/matters/5876/histories), primary document, 2026-03-17. - A $6 million National Science Foundation project joins UAF, UAA, Montana Technological University and the University of Wyoming. [University of Alaska Fairbanks](https://www.uaf.edu/news/uaf-joins-6m-nsf-critical-minerals-effort.php), primary document, 2026-10-05. - The project studies how microorganisms and AI-based methods can recover rare earth elements from coal refuse and ash. [University of Alaska Fairbanks](https://www.uaf.edu/news/uaf-joins-6m-nsf-critical-minerals-effort.php), primary document, 2026-10-05. - NSF's award record says the initiative is led by the University of Alaska Anchorage in partnership with UAF, Montana Tech and the University of Wyoming. [National Science Foundation award record 2614749](https://api.nsf.gov/services/v1/awards/2614749.json), primary document, 2026-08-05. - UAA's component of the collaborative award is $3,824,575. [National Science Foundation award record 2614749](https://api.nsf.gov/services/v1/awards/2614749.json), primary document, 2026-08-05. - UAF's portion of the work is supported by nearly $913,000 of the total award. [University of Alaska Fairbanks](https://www.uaf.edu/news/uaf-joins-6m-nsf-critical-minerals-effort.php), primary document, 2026-10-05. - NSF's abstract says the project applies reinforcement-learning controllers within a bioprocess digital twin linked to microgrid simulators. [National Science Foundation award record 2614749](https://api.nsf.gov/services/v1/awards/2614749.json), primary document, 2026-08-05. - UAF says the project is one of eight NSF EPSCoR projects sharing $39.9 million across 16 jurisdictions. [University of Alaska Fairbanks](https://www.uaf.edu/news/uaf-joins-6m-nsf-critical-minerals-effort.php), primary document, 2026-10-05. - Srijan Aggarwal said the team is connecting environmental engineering, microbiology, mineral processing and AI to recover valuable elements from waste. [University of Alaska Fairbanks](https://www.uaf.edu/news/uaf-joins-6m-nsf-critical-minerals-effort.php), primary document, 2026-10-05. - Terra Energy signed a 20-year lease with the University of Alaska for land near Port MacKenzie. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - The lease was signed in late May, according to university officials quoted by the Mat-Su Sentinel. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - The university land leased to Terra Energy totals 829 acres. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - UA Land Management director Adrienne Stolpe said the lease authorizes the Terra Energy Center Campus, which the lease describes as a large-scale industrial park. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - Permitted uses under the lease include facilities for industrial and commercial tenants and for energy generation, transmission, storage and distribution. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - The lease authorizes Terra Energy to sublease to future tenants consistent with the permitted uses. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - The lease pays the university $20,000 in its first year. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - The lease payment rises to $60,000 a year in the second and third years. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - When operations begin the lease payment would rise to $586,000 a year. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - The $586,000 payment carries a 2 percent annual inflation adjustment through the end of the 20-year lease. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - Site development and construction would begin in 2029, the fourth year of the lease. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - Operations on the leased land are targeted for 2030. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - Projects on university land are exempt from the best interest finding the state requires for major actions on state land. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - Terra's full preliminary development plan provided to the university is confidential, according to Stolpe. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - Terra Energy officials did not respond to the Mat-Su Sentinel's request for comment. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - Information the university released about the deal does not highlight data centers. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - Mat-Su Borough officials were not informed before the university leased the land, an inholding within the borough's 8,000-acre port district. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - Borough officials expect Terra to keep pursuing a lease of about 1,000 acres of borough land near the port for similar projects. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - If Terra requests and wins the borough lease, it would hold leases on about a quarter of the land in the port district. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - Mat-Su Borough Port Manager Dave Griffin said the university leasing the land without any conversation with the borough "blows my mind". [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - Terra's port projects are part of affiliate company Flatlands Energy's plan for a new coal-fired power plant near Skwentna. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - The coal plant plan calls for piping carbon emissions more than 60 miles to Cook Inlet for underground storage. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - The veto override passed 6-1, with Assembly member Stephanie Nowers voting no. [Anchorage Daily News (republished from Mat-Su Sentinel)](https://www.adn.com/alaska-news/mat-su/2026/03/19/mat-su-assembly-overrides-veto-advances-data-center-related-partnership/), report, 2026-03-20. - The resolution sets up a two-year partnership with Terra and does not require the borough to sell or lease land or commit to a data center. [Anchorage Daily News (republished from Mat-Su Sentinel)](https://www.adn.com/alaska-news/mat-su/2026/03/19/mat-su-assembly-overrides-veto-advances-data-center-related-partnership/), report, 2026-03-20. - On September 15th the Mat-Su Assembly unanimously passed a resolution saying large-scale industrial and energy development belongs at Point MacKenzie or West Susitna rather than on state land near Houston. [Mat-Su Sentinel](https://www.matsusentinel.com/mat-su-assembly-calls-for-industrial-projects-at-point-mackenzie-west-susitna-opposes-aidea-transfer/), report, 2026-09-16. - The Mat-Su Sentinel's report states rent for the first year, for the second and third years and from the start of operations, and gives no rent figure for 2029, the fourth year, when construction would begin. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. - The Mat-Su Sentinel published its report on the lease on October 6th. [Mat-Su Sentinel](https://www.matsusentinel.com/large-industrial-energy-projects-planned-for-leased-ua-land-at-port-mackenzie/), report, 2026-10-06. Slides and the deck PDF are linked from the canonical page.