A large data center is proposed for the former papermill in Usk. Locals worry how it will fit in 'small-town USA'
Merkle Standard, owned by Allrise Capital Inc., proposes a large data center at a former papermill in Usk, Pend Oreille County, Washington. The project could require 225 megawatts of electricity, significantly more than the rest of the county's residents and small businesses combined. Local residents, county commissioners, and the Kalispel Tribe express worry and a lack of public consultation regarding the development's impact on power infrastructure and the environment.
Merkle Standard, a company owned by Irvine, California-based Allrise Capital Inc., is proposing to convert the former Ponderay Newsprint papermill in Usk, Pend Oreille County, Washington, into a large data center. This development follows Merkle Standard's previous failed attempt to establish a major cryptocurrency mining operation on the same site, which went bankrupt in 2020 and resulted in 140 job losses. The proposed data center is projected to consume 225 megawatts of electricity, which is more than seven times the current usage of all other Pend Oreille County residents and small businesses combined.
Discussions have been held between Merkle Standard Infrastructure and Chris Jones, general manager of the Pend Oreille County Public Utility District (PUD), regarding power studies and the costs of necessary system upgrades. However, these discussions have not been made public, and county commissioners, including Robert Rosencrantz, and the Kalispel Tribe of Indians, whose reservation is across the river from the site, state they have not been consulted. Both expressed significant concerns about the project's impact on the small community and environment, citing unknown chemical use, emissions, and wastewater management.
PUD commissioner Curt Knapp voiced apprehension about data center developers "taking advantage" of small towns, while Kalispel Tribe's Deane Osterman highlighted the regional energy supply issues and potential risks to ratepayers. The article also touches on potential conflicts of interest among county commissioners, with Commissioner Rosencrantz facing an election against a candidate whose husband works for Merkle Standard, and Commissioner John Gentle having previously lobbied for Merkle Standard despite his wife's work in the power industry for other crypto/cloud companies. The broader context of increasing legislative efforts to restrict data centers nationwide due to concerns over noise, emissions, water, and power is also noted.