Fairbanks Alaska Fairbanks, Alaska Fairbanks is located in the heart of interior Alaska 370 road miles north of Anchorage, about eight hours by car. Fairbanks is Alaska's second largest city with over 80,000 residents in the greater Fairbanks area. Located near the confluence of the Tanana and Chena Rivers, the town was originally founded in the early 1900’s as a trading post serving stern-wheeler riverboats and early gold prospectors. The town still plays an important supply role in Alaska due to its proximity to the Arctic region and North Slope oil fields. Fairbanks typically enjoys long sunny days during the summer months, with temperatures frequently passing the 70 degree mark.