New Seattle data centers could spike electric rates

Seattle Mayor Katie Wilson and Seattle City Light are expressing concerns that proposed data center developments could significantly increase electricity rates for city residents. Four companies, specifically identified as Prologis, Equinix, and Sabey, are reportedly considering building four new data centers in Seattle. These centers could collectively require up to 369 megawatts of electricity, which is approximately one-third of Seattle's average daily power consumption. Mayor Wilson stated her team is collaborating with Seattle City Light and the City Council to identify long-term policy solutions, including the possibility of enacting a moratorium on new data center locations. Seattle City Light spokeswoman Jenn Strang confirmed that while no formal applications have been submitted, the utility is studying the implications and recommending the establishment of a specific rate or policy for large data center loads, similar to other utilities in Washington state. The potential rate hikes from data centers add to existing and anticipated increases for Seattle City Light customers, including a 5.6% increase in January, projected annual increases of 7-10% from 2027 onward for infrastructure investments, and further increases due to a $1.5 billion settlement with native tribes and a nearly $1 billion salmon project. These factors underscore the financial and infrastructural pressures facing the city's electric utility.