Spokane weighs moratorium amid talks over potential data center
The Spokane City Council has proposed an immediate one-year moratorium on data centers while Avista Utilities negotiates with an unnamed company seeking to build a large data center in the region. Councilmembers cite concerns over environmental risks, water, and energy consumption, aiming to use the moratorium period to develop regulations. The proposal follows a similar moratorium enacted by the Seattle City Council.
The Spokane City Council proposed an immediate one-year moratorium on data centers on Wednesday, a move spurred by an unnamed company's interest in building a large-scale facility in the area. Avista Utilities, the local power provider, is currently in negotiations with this company, which is seeking to develop a 125- to 500-megawatt data center and has filed a nonbinding agreement with the U.S. Securities and Exchange Commission.
Councilmember Paul Dillon, co-proposing the moratorium with Councilmembers Sarah Dixit and Kate Telis, expressed concerns about the environmental impact, significant water and energy demands of data centers, and the potential for increased energy rates for existing customers. He plans to bring the moratorium to a vote, allowing time for the city to develop comprehensive regulations for data center siting as part of an upcoming plan update. This proposal comes shortly after the Seattle City Council also passed a one-year data center moratorium.
Conversely, Councilmember Michael Cathcart views the moratorium as premature, arguing that no data center is likely to locate in Spokane city limits soon due to existing regulatory hurdles. While he shares concerns about potential impacts on constituents and the aquifer, he desires more information and a cost-benefit analysis before a rushed vote. Spokane Mayor Lisa Brown supports the moratorium, emphasizing the city's lack of a proper framework for siting and permitting data centers. State lawmakers previously considered ratepayer protection legislation and repealed a tax exemption for data center equipment, reflecting broader state-level debates on data center development.
Avista Utilities confirmed negotiations for a potential data center, noting the customer is expected to contribute significantly to grid infrastructure improvements to benefit existing ratepayers. The utility maintains a neutral stance on the moratorium, focusing on evaluating customer requests based on reliability, affordability, and regulatory compliance. An online petition opposing data centers in the area has garnered nearly 9,000 signatures.