Seattle approves higher electricity rates for new data centers
The Seattle City Council unanimously approved higher electricity rates for new and expanding data centers. This measure aims to cover the costs of new power infrastructure required by these energy-intensive facilities, preventing those costs from being passed on to residential customers. The new rates will take effect after Seattle's current one-year moratorium on data centers ends.
The Seattle City Council has unanimously voted to implement higher electricity rates for new and expanding data centers. The new policy, approved on Tuesday, is designed to ensure that the energy-hungry facilities bear the full cost of developing new power sources and transmission lines, rather than burdening residential ratepayers.
Councilmember Debra Juarez emphasized that the enormous electricity demand from data centers reflects a historical pattern of resource extraction without full cost compensation. While no one opposed the measure at Tuesday's meeting, a representative from the data center industry had previously expressed concerns that the increased rates could deter companies from establishing or expanding operations in Seattle, potentially leading to job losses.
The new rates will apply to data centers constructed after the expiration of Seattle's current one-year moratorium on such facilities, as well as to projects located outside city limits but supplied by Seattle City Light. This decision comes amidst expected residential electricity rate increases of nearly 10% in the coming years, which Seattle City Light attributes to broader utility costs, separate from the data center-specific charges.