The area that became Alaska was purchased from the Russian Empire after Western Union discontinued construction of its first electric telegraph line which ran from California, up the coast of North America, across the Bering Strait, continuing to Moscow and into the European telegraph network. Despite $3 million in U.S. investment for the Russian-American telegraph expedition, work ceased upon the completion of the competing Transatlantic telegraph cable. The U.S. realized the potential of continuing the line to Moscow and sent Secretary of State William H. Seward to negotiate with the Russian Ambassador to fund the remaining phases of the telegraph line. Russia did not see the potential in funding, so Alaska was offered in exchange for the value of the Russian-American telegraph. The Russians feared that if they did not sell Russian North America, it would be taken from them by the westward expansion of the United States and Canada. They tried to play one potential purchaser off against the other to start a bidding war, but were largely unsuccessful.
The U.S. Senate approved the purchase of Alaska from the Russian Empire on March 30, 1867, for $7.2 million at two cents per acre, about five cents per hectare. The land went through several administrative changes before becoming an organized territory on May 11, 1912 and the 49th state of the U.S. on January 3, 1959. The name "Alaska" was already introduced in the Russian colonial time, when it was used only for the peninsula and is derived from the Aleut alaxsxaq, meaning "the mainland" or more literally, "the object towards which the action of the sea is directed." It is also known as Alyeska, the "great land," an Aleut word derived from the same root.
The United States Census Bureau, as of July 1, 2008, estimated Alaska's population at 686,293, which represents an increase of 59,361, or 9.5%, since the last census in 2000. This includes a natural increase since the last census of 60,994 people (that is 86,062 births minus 25,068 deaths) and a decrease due to net migration of 5,469 people out of the state. Immigration from outside the United States resulted in a net increase of 4,418 people, and migration within the country produced a net loss of 9,887 people. In 2000 Alaska ranked 48th out of 50 states by population. Alaska is the least densely populated state, and one of the most sparsely-populated areas in the world, at 1.0 people per square mile (0.42/km²), with the next state, Wyoming, at 5.1 per square mile (1.97/km²). It is the largest U.S. state by area, and the 6th wealthiest (per capita income).
According to the 2000 U.S. Census, 69.3% of single-race Alaska residents were caucasian and 15.6% were Native American or Alaska Native, the largest proportion of any state. Multiracial/Mixed-Race people are the third largest group of people in the state, totaling 6.9% of the population. The largest self-reported ancestry groups in the state are German (16.6%), Alaska Native or American Indian (15.6%), Irish (10.8%), British (9.6%), American (5.7%), and Norwegian (4.2%).
The vast sparsely populated regions of northern and western Alaska are primarily inhabited by Alaska Natives, who are also numerous in the southeast. Anchorage, Fairbanks, and other parts of south-central and southeast Alaska have many whites of northern and western European ancestry. The Wrangell-Petersburg area has many residents of Scandinavian ancestry and the Aleutians contain a large Filipino population. Most of the state's black population lives in Anchorage, though Fairbanks also has a sizable black population.
According to the 2000 U.S. Census, 85.7% of Alaska residents aged 5 and older speak English at home. The next most common languages are Spanish (2.88%), Yupik (2.87%), Filipino (1.54%), and Iñupiaq (1.06%). A total of 5.2% of Alaskans speak one of the state's 22 indigenous languages, known locally as Native American languages, of which most are moribund. Chinook Jargon was also once spoken in southern Alaska.
Alaska has been identified, along with Pacific Northwest states Washington and Oregon, as being the least religious in the U.S. According to statistics collected by the Association of Religion Data Archives, only about 39% of Alaska residents were members of religious congregations. Evangelical Protestants had 78,070 members, Roman Catholics had 54,359, and mainline Protestants had 37,156. After Catholics and Eastern Orthodox, the largest single denominations are The Church of Jesus Christ of Latter Day Saints (Mormons/LDS) with 29,460, Southern Baptists with 22,959, and Orthodox with 20,000. The large Eastern Orthodox (with 49 parishes and up to 50,000 followers) population is a result of early Russian colonization and missionary work among Alaska Natives. In 1795, the First Russian Orthodox Church was established in Kodiak. Intermarriage with Alaskan Natives helped the Russian immigrants integrate into society. As a result, more and more Russian Orthodox churches gradually became established within Alaska. Alaska also has the largest Quaker population (by percentage) of any state. In 2003 there were 3,000 Jews in Alaska (for whom observance of the mitzvah may pose special problems). Estimates for the number of Alaskan Muslims range from 2,000 to 5,000. Hindus are also represented through a number of temples and associations and adherents number over one thousand. Alaskan Hindus often share venues and celebrations with members of other religious communities including Sikhs and Jains.
Alaska has few road connections compared to the rest of the U.S. The state's road system covers a relatively small area of the state, linking the central population centers and the Alaska Highway, the principal route out of the state through Canada. The state capital, Juneau, is not accessible by road, only a car ferry, which has spurred several debates over the decades about moving the capital to a city on the road system, or building a road connection from Haines. The western part of Alaska has no road system connecting the communities with the rest of Alaska.
One unique feature of the Alaska Highway system is the Anton Anderson Memorial Tunnel, an active Alaska Railroad tunnel recently upgraded to provide a paved roadway link with the isolated community of Whittier on Prince William Sound to the Seward Highway about 50 miles (80 km) southeast of Anchorage. At 2.5 miles (4.0 km) the tunnel was the longest road tunnel in North America until 2007. The tunnel is the longest combination road and rail tunnel in North America.
Built around 1915, the Alaska Railroad (ARR) played a key role in the development of Alaska through the 20th century. It links north Pacific shipping through providing critical infrastructure with tracks that run from Seward to Interior Alaska via South Central Alaska, passing through Anchorage, Eklutna, Wasilla, Talkeetna, Denali, and Fairbanks, with spurs to Whittier, Palmer and North Pole. The cities, towns, villages, and region served by ARR tracks are known statewide as "The Railbelt". In recent years, the ever-improving paved highway system began to eclipse the railroad's importance in Alaska's economy.
The railroad, though famed for its summertime tour passenger service, played a vital role in Alaska's development, moving freight into Alaska while transporting natural resources southward (i.e., coal from the Usibelli coal mine near Healy to Seward and gravel from the Matanuska Valley to Anchorage.)
The Alaska Railroad was one of the last railroads in North America to use cabooses in regular service and still uses them on some gravel trains. It continues to offer one of the last flag stop routes in the country. A stretch of about 60 miles (100 km) of track along an area north of Talkeetna remains inaccessible by road; the railroad provides the only transportation to rural homes and cabins in the area; until construction of the Parks Highway in the 1970s, the railroad provided the only land access to most of the region along its entire route.
In northern Southeast Alaska, the White Pass and Yukon Railroad also partly runs through the State from Skagway northwards into Canada (British Columbia and Yukon Territory), crossing the border at White Pass Summit. This line is now mainly used by tourists, often arriving by cruise liner at Skagway. It featured in the 1983 BBC television series Great Little Railways.
Most cities, towns and villages in the state do not have road or highway access; the only modes of access involve travel by air, river, or the sea.
Alaska's well-developed state-owned ferry system (known as the Alaska Marine Highway) serves the cities of Southeast, the Gulf Coast and the Alaska Peninsula. The system also operates a ferry service from Bellingham, Washington and Prince Rupert, British Columbia in Canada via the Inside Passage to Skagway. The Inter-Island Ferry Authority also serves as an important marine link for many communities in the Prince of Wales Island region of Southeast and works in concert with the Alaska Marine Highway.
In recent years, large cruise ships began creating a summertime tourism market, mainly connecting the Pacific Northwest to Southeast Alaska and, to a lesser degree, towns along the north gulf coast. Several times each summer, the population of Ketchikan sharply rises for a few hours when two ships dock to debark more than a thousand passengers each while four other ships lie at anchor nearby, waiting their turn at the dock.
Cities not served by road or sea can be reached only by air or by hiking/dogsled, accounting for Alaska's extremely well-developed bush air services—an Alaskan novelty. Anchorage itself, and to a lesser extent Fairbanks, are serviced by many major airlines. Air travel is the cheapest and most efficient form of transportation in and out of the state. Anchorage recently completed extensive remodeling and construction at Ted Stevens Anchorage International Airport to help accommodate the upsurge in tourism (in 2000–2001, the latest year for which data is available, 2.4 million total arrivals to Alaska were counted, 1.7 million via air travel; 1.4 million were visitors).
Regular flights to most villages and towns within the state that are commercially viable are challenging to provide, so they are heavily subsidized by the federal government through the Essential Air Service program. Alaska Airlines is the only major airline offering in-state travel with jet service (sometimes in combination cargo and passenger Boeing 737-400s) from Anchorage and Fairbanks to regional hubs like Bethel, Nome, Kotzebue, Dillingham, Kodiak, and other larger communities as well as to major Southeast and Alaska Peninsula communities. The bulk of remaining commercial flight offerings come from small regional commuter airlines such as Era Aviation, PenAir, and Frontier Flying Service. The smallest towns and villages must rely on scheduled or chartered bush flying services using general aviation aircraft such as the Cessna Caravan, the most popular aircraft in use in the state. Much of this service can be attributed to the Alaska bypass mail program which subsidizes bulk mail delivery to Alaskan rural communities. The program requires 70% of that subsidy to go to carriers who offer passenger service to the communities. Perhaps the most quintessentially Alaskan plane is the bush seaplane. The world's busiest seaplane base is Lake Hood, located next to Ted Stevens Anchorage International Airport, where flights bound for remote villages without an airstrip carry passengers, cargo, and many items from stores and warehouse clubs. Alaska has the highest number of pilots per capita of any U.S. state: out of the estimated 663,661 residents, 8,550 are pilots, or about one in 78.
Another Alaskan transportation method is the dogsled. In modern times (that is, any time after the mid-late 1920s), dog mushing is more of a sport than a true means of transportation. Various races are held around the state, but the best known is the Iditarod Trail Sled Dog Race, a 1150-mile (1850 km) trail from Anchorage to Nome (although the mileage varies from year to year, the official distance is set at 1049 miles). The race commemorates the famous 1925 serum run to Nome in which mushers and dogs like Togo and Balto took much-needed medicine to the diphtheria-stricken community of Nome when all other means of transportation had failed. Mushers from all over the world come to Anchorage each March to compete for cash, prizes, and prestige. The "Serum Run" is another sled dog race that more accurately follows the route of the famous 1925 relay, leaving from the community of Nenana (southwest of Fairbanks) to Nome.
President Dwight Eisenhower admitted in his autobiography that he pushed to have Alaska admitted into the union as a state, partially because he wanted an American win in the 1959 World Sled Dog Championships, held in Finland. The previous W.S.D.C. titles had been won by the Soviet Union.
In areas not served by road or rail, primary transportation in summer is by all-terrain vehicle and in winter by snowmobile or "snow machine," as it is commonly referred to in Alaska.