The Fight Over Data Centers Next Door

Eastern Washington is experiencing a boom in data center development, driven by factors like inexpensive hydropower and state tax breaks. While facilities in towns like Quincy have brought significant financial benefits, environmentalists and activists, including Emily Johnston of Troublemakers Community and Zach Baker of NW Energy Coalition, are sounding alarms about the industry's growing environmental footprint. They warn that the next generation of power-hungry AI data centers could undermine Washington's climate goals by increasing electricity demand, potentially leading to greater reliance on fossil fuels, and exacerbate drought conditions due to high water usage. Opponents also express concern that the increased demand could cause electricity prices to soar for Washington residents, citing proposed rate increases by Puget Sound Energy. Last year, state lawmakers in Olympia, with support from conservation groups and tribal nations, attempted to pass a bill to regulate data centers. The proposed legislation aimed to require utilities to levy tariffs on data centers to cover their consumption costs, mandate reporting on energy and water usage, and require facilities to shut down during grid strain. Despite public commitments from tech giants like Microsoft, Amazon, and Google to pay their fair share, industry lobbyists, including the Data Center Coalition's Dan Diorio, opposed the bill, arguing it unfairly singled out data centers. Rural elected officials and construction unions also expressed opposition. Although the House passed a scaled-down version, the bill ultimately died without a Senate vote. However, the legislature did pass a separate law to partially eliminate the sales tax break for data center equipment. Activists view this as the beginning of a larger fight, intending to build momentum for future legislative sessions to revisit these regulations.