Spokane City Council Proposes Data Center Moratorium Amid Confidential Avista Negotiations

Spokane City Council Proposes Data Center Moratorium Amid Confidential Avista Negotiations

News ClipRANGE Media·Spokane County, WA·6/11/2026

Avista Corp. is negotiating with an unnamed data center developer for a large, 500-megawatt project in Eastern Washington, which they kept confidential from the public initially. Due to community concerns about energy and water usage, Spokane City Council members have proposed a moratorium on new data centers to allow time to develop a regulatory framework.

electricitywatermoratoriumoppositionenvironmentalgovernment
Gov: Spokane City Council, Washington Utilities and Transportation Commission, Spokane County, Idaho Department of Water Resources

Avista Corp. is in early exploratory discussions and negotiations with a prospective data center developer for a large-scale project in its service territory, projected to require up to 500 megawatts. Avista President and CEO Heather Rosentrater disclosed the project during a May 5 earnings call, but the utility kept details from the public due to confidentiality agreements.

Local leaders and community members, including Spokane City Council members Paul Dillon, Sarah Dixit, and Kate Telis, expressed dissatisfaction with Avista's lack of transparency and the potential strain on resources. Following the news, they announced proposed city legislation to enact a moratorium on new data centers, aiming to create a necessary legal and regulatory framework for such energy-intensive facilities. Concerns include the immense electricity demand, equivalent to 400,000 homes, and potential impacts on local water resources, aquifers, and the Spokane River ecosystem.

While the specific location of the data center within Avista's 30,000 square-mile service area (spanning Eastern Washington, Idaho, and Oregon) remains undisclosed, a 203-acre site near Spokane's Hillyard neighborhood with 240 megawatts of available power has been promoted by Daines Capital. An opposition group is forming due to the lack of information and environmental worries, echoing similar community efforts elsewhere, such as a recently enacted moratorium in Seattle.