Seattle AI data center boom could strain power supply, raise rates

Seattle is facing a potential boom in AI data centers, with three companies currently exploring the development of four large-scale facilities that could dramatically increase the city's power demand. Initially, four companies approached Seattle City Light about five potential data centers, but one has since withdrawn plans. The remaining projects could collectively consume approximately one-third of the city's average daily electricity supply. Andy Strong, an executive with Seattle City Light, identified the interested companies as Prologis, Equinix, and Sabey, noting their potential interest in the southernmost part of the utility's service territory. These projects are in their nascent stages, undergoing a "cluster study"—an engineering exercise designed to help developers understand power supply options and estimated infrastructure costs. Strong also clarified that while major tech companies like Microsoft and Amazon are making large AI investments, they are not directly identified as the entities pursuing these specific Seattle projects. Concerns are mounting regarding the proposed data centers' potential impact, including a significant strain on Seattle City Light's ability to reliably serve existing customers, soaring electricity rates, and increased water consumption. In response, Seattle City Light is developing a draft large-load policy, which is currently under review with Mayor Katie Wilson, aimed at protecting existing ratepayers from potential cost increases. This initiative comes as utilities nationwide are grappling with increased power growth due to broad electrification pushes.