Data centers driving demand for gas from Northwest utilities, reports find
Electric utilities in Washington and Oregon are increasingly turning to gas-powered energy to meet the rapid demand from new data centers, jeopardizing state-established emission reduction targets. Reports from Columbia Riverkeeper and Sightline Institute detail how utilities are investing in new gas infrastructure or purchasing gas-powered electricity, with some data centers also using on-site gas generators. Companies like Amazon and Microsoft claim to be investing in clean energy, though Amazon was fined for an air quality permit violation at an Oregon data center.
Electric utilities across Washington and Oregon are increasingly relying on gas to satisfy the soaring energy demand from numerous new data center facilities, according to recent analyses by the Columbia Riverkeeper and the Sightline Institute. This trend threatens to undermine both states' climate goals, which include ambitious emission reduction targets.
The reports highlight how utility companies are either investing in new gas-powered infrastructure or increasing their purchases of gas-powered energy from wholesale markets to accommodate data center growth. Specific examples include the Umatilla Electric Cooperative experiencing over 500% load growth due to data centers, and the Grant County Public Utility District commissioners approving plans for VoltaGrid to build a 12-megawatt methane gas power plant for a Vantage hyperscale data center campus near Quincy, Washington.
Representatives from major data center operators, including Amazon and Microsoft, assert their commitment to responsible development, energy efficiency, and investment in renewable energy projects within the region. Amazon spokesperson Margaret Callahan noted the company's $60 billion investment in Oregon and efforts to connect to clean energy sources. Microsoft, through spokesperson Morgan Babinec, cited its goal for 100% renewable energy coverage globally by 2025 and plans to transition backup generators to biofuel. However, the Oregon Department of Environmental Quality recently fined an Amazon data center in Hermiston for exceeding air quality permit limits for its emergency diesel generator.
Researchers warn that this reliance on gas could cause both states to miss their emission reduction targets, as utilities justify skirting climate rules by citing the need for regional energy reliability. Lawmakers in both states have been recommended by Laura Feinstein of the Sightline Institute to consider policies similar to Texas, requiring data centers to power down during periods of high grid demand to mitigate the need for additional fossil fuel infrastructure.