Seattle banned new data centers. Why do companies want them here anyway?
Seattle City Council has enacted a one-year moratorium on new and expanding data centers to study their impact on electricity, water, and neighborhoods. This decision follows proposals for large data center projects that would consume significant amounts of power, sparking concerns among residents and activists. The moratorium allows the city time to consider permanent regulations and explore new utility rate structures for data centers.
Seattle has become the largest U.S. city to pause new data center approvals, with the City Council unanimously passing a one-year moratorium on June 9. The temporary ban targets new and expanding facilities larger than 20 megawatts, aiming to provide leaders time to assess the environmental, infrastructural, and community impacts of data centers.
The moratorium was enacted after developers proposed projects that, at peak load, would have used over a third of Seattle's typical daily electricity consumption. This move is part of a growing national trend, with concerns about power usage, water consumption, and land use now reaching urban centers like Seattle.
Supporters, including groups like Washington AI Resistance and 350 Seattle, cite issues such as increased utility rates, heat, noise, and light pollution, alongside a broader debate about artificial intelligence and the power of large tech companies. Activists, celebrating the moratorium as a "first step," are also pushing for state-level legislation. However, Jon Scholes of the Downtown Seattle Association voiced concerns that the moratorium could hinder economic growth and investment.
Despite the moratorium, some data center projects may proceed due to pre-existing land use applications or smaller power footprints. Meanwhile, Seattle City Light is exploring plans to charge new and expanding data centers higher rates and upfront fees for infrastructure improvements to protect residential consumers from rising electricity costs, which are projected to increase by an average of 9.5% in 2027 and 2028.