The borough assembly has unanimously authorized a nonbinding agreement with data center provider Greensparc to explore the company building and operating a modular cloud computing facility at the former 6-Mile mill site.

Greensparc last year set up a small, prefabricated data center in Cordova.

Wrangell and Cordova both are served by hydroelectric power, which appeals to cloud computing companies marketing lower-carbon operations.

“We deliver rapid, scalable solutions powered by green energy in remote communities,” the California-based company says on its website.

The memorandum of understanding outlines the parties’ intent to collaborate on planning, design and development of a data center.

Any project would aim to promote sustainable economic growth, use Wrangell’s renewable hydropower and fit with the borough’s broader infrastructure and economic development plans, according to the agreement approved by the assembly at an Aug. 21 special meeting.

Wrangell is seeking to diversify its economy by attracting technology-driven industries that can leverage local infrastructure, hydropower and the community’s location.

The borough is preparing an application to the U.S. Economic Development Administration’s Industry Transformation Path grant program and has identified Greensparc as a coalition partner, with the proposed data center as a potential catalyst for economic diversification.

The goal of the memorandum — which does not commit the borough or Greensparc to actual site development or construction — is to reach a definitive agreement for the company to install and operate the center at 6-Mile under a lease for borough-owned property.

The municipality bought the 42-acre 6-Mile site in 2022 for $2.5 million with plans to sell or lease portions to promote economic development.

“I think this is a great opportunity and it’s something we want to get out ahead of,” Borough Manager Mason Villarma said.

In anticipation of a deal, the borough has been talking with the Southeast Alaska Power Agency, which operates the Tyee Lake hydroelectric plant, about adding a new circuit and transformer at 6-Mile, Villarma said.