Washington's next data center boom comes with real tradeoffs | The Newsfeed

News Clip4:10Cascade PBS·Quincy, Chelan County, WA·8/21/2026

Central Washington is preparing for a data center boom, bringing economic benefits like tax revenue and jobs, but also significant strain on the electrical grid and water systems. Microsoft is developing its first data center in Chelan County, expected to draw up to 150MW. Local residents in nearby Grant County are actively opposing the construction of a new 230-kilowatt transmission line, needed for regional data centers, due to its impact on their property.

electricitywaterenvironmentaloppositiongovernmentannouncement
Microsoft
Gov: Chelan County Public Utility District, East Wenatchee City Council, Grant County PUD

Washington State is on the cusp of a significant data center expansion, particularly in Central Washington, which is predicted to bring both economic advantages and considerable environmental challenges. The primary concerns include increased demand on the electrical grid and already strained water systems, exacerbated by drought conditions.

Microsoft is spearheading this development with plans for its first data center campus in Chelan County, specifically in Malaga near the Columbia River. This facility is projected to eventually consume up to 150 megawatts (MW) of power. The Chelan County Public Utility District (PUD) has a unique policy: while it generates surplus hydropower, its board has decided not to sell this energy to data centers, requiring large power consumers like Microsoft to source electricity externally. Microsoft states it will bring in clean power from outside the region.

Matthew Hepner, an East Wenatchee Council member and IBEW union official, views data centers as a vital economic driver for central Washington, contributing to the tax base and creating jobs. He advocates for increased clean energy infrastructure statewide to support this growing industry, arguing that if data centers are driven away, they will relocate to areas with less stringent environmental standards and rely on fossil fuels.

However, the rapid growth is not without local opposition. Jacque and Alan Rasmussen, who live approximately ten miles south of Quincy in Grant County, are directly impacted by the infrastructural demands. They are actively fighting a proposed 230-kilowatt transmission line that Grant County PUD intends to build through their property to supply power to data centers. The Rasmussens argue that ratepayers are bearing the financial burden through increased rates, and some, like themselves, are facing the loss of their homes or significant property disruption, advocating for alternative routes on public lands.