# Not how big. What it plugs into. Petersburg's draft rules > On Petersburg's downtown waterfront, the Ocean Beauty cannery has been shut since 2016. Its buyer also owns its 2-megawatt transformer. Published 2026-11-01 by Alaska AI. 9 slides. Canonical: https://alaskaaihq.com/archive/2026-11-01/ ## The story Not how big. What it plugs into. It pauses on-site power, not the grid. The Assembly unanimously told staff to draft a nine-month moratorium on data centers that make their own power or skip closed-loop cooling. A project on Petersburg's grid could still apply for a building permit. "Probably far-fetched." Vice Mayor Jeigh Stanton Gregor, who proposed the moratorium, said a data center running on diesel power and bypassing the grid was "probably far-fetched." A shut cannery. A 2 MW transformer. Andrew Mazzella bought the old Ocean Beauty cannery, closed since 2016, in 2024. He also owns its transformer. Greensparc planned a small data center on that existing service, cooled by a closed loop. The deal didn't finalize. Mostly falling water Petersburg runs on hydropower, from its own plant and mostly from the Southeast Alaska Power Agency, which also supplies Wrangell and Ketchikan. The utility said it had surplus. What selling 2 MW was projected to do The deal behind these numbers didn't finalize. The developer is still pursuing a small data center. 3,829 square miles October's draft would cover the whole borough except Kupreanof. September's stopped about nine miles south of town. Tied 3 to 3 in September. Unanimous in October. The Assembly split on the Planning Commission's year-long moratorium. Then it backed a nine-month draft and Jeff Meucci's Title 19 zoning changes. Both return for public hearings before taking effect. The test is the plug. Petersburg's utility is drafting its own rules for large power users. SEAPA also supplies Wrangell and Ketchikan. Should they write the same test? ## What we verified - Petersburg resident Becky Knight urged the Assembly in a May 4th statement to enact a moratorium on cell towers and data centers until their impacts were analyzed. [Petersburg Borough Assembly meeting record (statement by Becky Knight)](https://mccmeetingspublic.blob.core.usgovcloudapi.net/petersbgak-meet-7de0099f69164d39b63ee48c257a1e41/ITEM-Attachment-001-1c0fa3a6833044baaa07a2b769ab07e1.pdf), primary document, 2026-05-04. - AEA estimates the Cook Inlet PowerLink transmission project will cost 413 million dollars. [Alaska Energy Authority](https://www.akenergyauthority.org/Portals/0/Who%20We%20Are/News%20Room/Press%20Releases/202610.15%20AEA%20CIPLink%20PQ%20and%20RFI%20Press%20Release%20(Final)1.pdf?ver=rVyEyMqvlFuZXN_VSOqynw%3d%3d), primary document, 2026-10-15. - AEA has secured 269 million dollars for Cook Inlet PowerLink. [Alaska Energy Authority](https://www.akenergyauthority.org/Portals/0/Who%20We%20Are/News%20Room/Press%20Releases/202610.15%20AEA%20CIPLink%20PQ%20and%20RFI%20Press%20Release%20(Final)1.pdf?ver=rVyEyMqvlFuZXN_VSOqynw%3d%3d), primary document, 2026-10-15. - About 142 million dollars of Cook Inlet PowerLink's cost is still to be identified. [Alaska Energy Authority](https://www.akenergyauthority.org/Portals/0/Who%20We%20Are/News%20Room/Press%20Releases/202610.15%20AEA%20CIPLink%20PQ%20and%20RFI%20Press%20Release%20(Final)1.pdf?ver=rVyEyMqvlFuZXN_VSOqynw%3d%3d), primary document, 2026-10-15. - Cook Inlet PowerLink would include a submarine cable of about 40 miles between the Beluga area and the Kenai Peninsula. [Alaska Energy Authority](https://www.akenergyauthority.org/Portals/0/Who%20We%20Are/News%20Room/Press%20Releases/202610.15%20AEA%20CIPLink%20PQ%20and%20RFI%20Press%20Release%20(Final)1.pdf?ver=rVyEyMqvlFuZXN_VSOqynw%3d%3d), primary document, 2026-10-15. - Cook Inlet PowerLink's initial 100 megawatt system would accommodate future expansion to 200 megawatts. [Alaska Energy Authority](https://www.akenergyauthority.org/Portals/0/Who%20We%20Are/News%20Room/Press%20Releases/202610.15%20AEA%20CIPLink%20PQ%20and%20RFI%20Press%20Release%20(Final)1.pdf?ver=rVyEyMqvlFuZXN_VSOqynw%3d%3d), primary document, 2026-10-15. - Cook Inlet PowerLink targets a 2031 in-service date, with federally funded completion required by August 2032. [Alaska Energy Authority](https://www.akenergyauthority.org/Portals/0/Who%20We%20Are/News%20Room/Press%20Releases/202610.15%20AEA%20CIPLink%20PQ%20and%20RFI%20Press%20Release%20(Final)1.pdf?ver=rVyEyMqvlFuZXN_VSOqynw%3d%3d), primary document, 2026-10-15. - Responses to AEA's submarine cable prequalification and request for information are due December 15th, after a virtual conference on November 4th. [Alaska Energy Authority](https://www.akenergyauthority.org/Portals/0/Who%20We%20Are/News%20Room/Press%20Releases/202610.15%20AEA%20CIPLink%20PQ%20and%20RFI%20Press%20Release%20(Final)1.pdf?ver=rVyEyMqvlFuZXN_VSOqynw%3d%3d), primary document, 2026-10-15. - AEA will receive about 32.8 million dollars through the Department of Energy's Grid Resilience State and Tribal Formula Grant Program. [Alaska Energy Authority](https://www.akenergyauthority.org/Portals/0/Who%20We%20Are/News%20Room/Press%20Releases/2026.10.21%20AEA%20Awarded%2032.8M%20Through%20DOE%20Grid%20Resilience%20Program%20Press%20Release.pdf?ver=wj5xjaYQ0Wp_C1xppDdVbw%3d%3d), primary document, 2026-10-21. - Alaska's grid resilience allocation is the third largest among states, behind California and Texas. [Alaska Energy Authority](https://www.akenergyauthority.org/Portals/0/Who%20We%20Are/News%20Room/Press%20Releases/2026.10.21%20AEA%20Awarded%2032.8M%20Through%20DOE%20Grid%20Resilience%20Program%20Press%20Release.pdf?ver=wj5xjaYQ0Wp_C1xppDdVbw%3d%3d), primary document, 2026-10-21. - The grid resilience allocation was 12.8 million dollars more than AEA anticipated. [Alaska Energy Authority](https://www.akenergyauthority.org/Portals/0/Who%20We%20Are/News%20Room/Press%20Releases/2026.10.21%20AEA%20Awarded%2032.8M%20Through%20DOE%20Grid%20Resilience%20Program%20Press%20Release.pdf?ver=wj5xjaYQ0Wp_C1xppDdVbw%3d%3d), primary document, 2026-10-21. - Securing all of the grid resilience funds requires a 1.8 million dollar state match. [Alaska Energy Authority](https://www.akenergyauthority.org/Portals/0/Who%20We%20Are/News%20Room/Press%20Releases/2026.10.21%20AEA%20Awarded%2032.8M%20Through%20DOE%20Grid%20Resilience%20Program%20Press%20Release.pdf?ver=wj5xjaYQ0Wp_C1xppDdVbw%3d%3d), primary document, 2026-10-21. - The Department of Energy announced the Beluga to Healy transmission project would combine up to 150 million dollars in Defense Production Act funding with 268 million dollars in non-federal funding. [U.S. Department of Energy](https://www.energy.gov/articles/energy-department-announces-alaska-railbelt-transmission-project-receive-defense), primary document, 2026-10-05. - EPA proposed on October 29th to approve Alaska's application for primary enforcement authority over Class VI carbon sequestration injection wells. [Federal Register (EPA)](https://www.govinfo.gov/content/pkg/FR-2026-10-29/html/2026-22085.htm), primary document, 2026-10-29. - Approval would let the Alaska Oil and Gas Conservation Commission issue and enforce Class VI permits. [Federal Register (EPA)](https://www.govinfo.gov/content/pkg/FR-2026-10-29/html/2026-22085.htm), primary document, 2026-10-29. - Comments on EPA's Alaska Class VI proposal must be received by December 14th. [Federal Register (EPA)](https://www.govinfo.gov/content/pkg/FR-2026-10-29/html/2026-22085.htm), primary document, 2026-10-29. - Alaska applied to EPA for Class VI primacy on May 22nd. [Federal Register (EPA)](https://www.govinfo.gov/content/pkg/FR-2026-10-29/html/2026-22085.htm), primary document, 2026-10-29. - The Petersburg Borough Assembly took up two data center items at its regular meeting on October 5th. [KFSK Petersburg](https://www.kfsk.org/2026/10/05/petersburg-borough-assembly-to-consider-appeal-budget-adjustments-data-center-related-items-today/), report, 2026-10-05. - The Assembly directed the Borough Manager and staff to draft an ordinance for a nine-month moratorium on certain data center projects. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - Vice Mayor Jeigh Stanton Gregor proposed the moratorium. [KFSK Petersburg](https://www.kfsk.org/2026/10/05/petersburg-borough-assembly-to-consider-appeal-budget-adjustments-data-center-related-items-today/), report, 2026-10-05. - The proposed moratorium would restrict data centers that use on-site power generation. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - The proposed moratorium would also cover data center facilities that don't use a closed-loop cooling system. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - Under the moratorium proposal, developers could still apply for a building permit if their project would be on Petersburg's grid. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - The Assembly approved Stanton Gregor's moratorium direction unanimously. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - Assembly Member Jeff Meucci brought the second data center proposal. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - The Assembly directed the manager to draft changes to the borough's zoning code, Title 19, to regulate data centers. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - The Assembly approved Meucci's zoning proposal unanimously. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - Both measures must return to the Assembly for consideration and public hearings before either can take effect. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - The moratorium as proposed would apply across the entire borough except the City of Kupreanof. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - Petersburg Borough incorporated 3,829 square miles when it became a borough in 2013. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - The September moratorium proposal had been limited to the borough's municipal service area, which ends roughly nine miles south of town. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - In September the Petersburg Planning Commission asked the Assembly for a year-long moratorium on data center applications or permits. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - The Assembly considered the Planning Commission's moratorium request on September 21st. [KFSK Petersburg](https://www.kfsk.org/2026/09/28/data-center-moratorium-proposal-fails-in-petersburg-assembly-stalemate/), report, 2026-09-28. - The Assembly's vote on the year-long moratorium request ended in a 3 to 3 tie, so it failed. [KFSK Petersburg](https://www.kfsk.org/2026/09/28/data-center-moratorium-proposal-fails-in-petersburg-assembly-stalemate/), report, 2026-09-28. - Stanton Gregor called the possibility of a data center running on diesel-generated power and bypassing the grid probably far-fetched but worth noting. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - Assembly Member Bob Martin said of the data center ordinance that 'we got to get something on the books.'. [KFSK Petersburg](https://www.kfsk.org/2026/10/16/petersburg-assembly-initiates-work-on-potential-moratorium-zoning-rules-for-data-centers/), report, 2026-10-16. - Petersburg's municipal utility department is drafting an ordinance to regulate large power users such as data centers. [KFSK Petersburg](https://www.kfsk.org/2026/09/28/data-center-moratorium-proposal-fails-in-petersburg-assembly-stalemate/), report, 2026-09-28. - Greensparc is a Silicon Valley-based company that builds small-scale data center facilities in communities with unused, stranded power and renewable energy. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - Developer Andrew Mazzella owns the defunct Ocean Beauty Seafoods property on Petersburg's downtown waterfront. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - Mazzella bought the former Ocean Beauty properties in 2024. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - Mazzella also owns the 2-megawatt transformer that powered the cannery. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - The Ocean Beauty cannery ceased operations in 2016. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - Mazzella is penalized thousands of dollars a month by the borough utility department for not using the transformer's power. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - Petersburg runs on hydropower. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - Petersburg has its own hydro plant south of town but buys most of its power from the Southeast Alaska Power Agency. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - The Southeast Alaska Power Agency supplies power to Petersburg, Wrangell and Ketchikan. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - Petersburg's utility projected a 5 percent rate increase for 2028. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - The utility's chart showed the 2028 projected increase falling to 0 percent if a full 2 megawatts were sold to a data center. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - Petersburg's utility department estimated the data center would generate 1 to 2 million dollars in revenue a year. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - Petersburg utility rates were projected to rise about 4 percent a year for several years, and the data center would lower that to about 2 percent. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - The Greensparc proposal would use the former cannery's existing power service, and the utility said it had enough surplus power to support it. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - Greensparc describes its cooling as a closed-loop system that works like a car radiator. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - Greensparc CEO Sam Enoka said 'We're not drawing any water, and we're not putting any emissions out.'. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. - The developer's business deal with Greensparc did not finalize, KFSK reported in late September. [KFSK Petersburg](https://www.kfsk.org/2026/09/28/data-center-moratorium-proposal-fails-in-petersburg-assembly-stalemate/), report, 2026-09-28. - Mazzella Alaska confirmed it is still pursuing a small-scale data center aligned with its initially announced plan. [KFSK Petersburg](https://www.kfsk.org/2026/09/28/data-center-moratorium-proposal-fails-in-petersburg-assembly-stalemate/), report, 2026-09-28. - A data center was proposed in Wrangell as part of a larger port development. [KFSK Petersburg](https://www.kfsk.org/2026/05/01/private-developer-plans-small-scale-data-center-project-on-petersburg-waterfront/), report, 2026-05-01. Slides and the deck PDF are linked from the canonical page.