The Anchorage Assembly is working on a new ordinance to regulate the building of local artificial intelligence-focused data centers. The proposal would require a public review process before one is built and would permit it only in commercial and industrial zones, not residential areas. The move comes as data centers are not defined in city code, meaning Anchorage lacks the ability to place guardrails on their development. The proposed ordinance would require landscaping buffers, property setbacks, and enclosed power equipment to mitigate noise and industrial appearance. However, it also includes potential energy supply issues during peak demand and increased grid capacity. The cost of the proposed ordinance may be borne by local taxpayers.