Spokane officials impose one-year ban on new data center projects

The Spokane City Council unanimously imposed a one-year moratorium on new data center projects Monday, following Avista Utilities' decision to pause negotiations with an unnamed large-load customer. The measure aims to provide the city with time to establish a comprehensive regulatory framework for data centers, addressing public concerns about strain on water and electricity infrastructure.

Councilmember Michael Cathcart was the sole vote against the moratorium, citing potential negative impacts on Spokane's economic development, particularly its burgeoning aerospace tech hub. He argued for an exemption for the tech hub, which an amendment from Councilmember Zack Zappone attempted to address but did not satisfy Cathcart. Councilmember Paul Dillon, who introduced the moratorium, emphasized the need for precautions due to the significant resource demands of data centers.

Experts and advocacy groups offered differing views. Katelyn Scott of Spokane Riverkeeper highlighted Spokane's substantial municipal water rights, making long-term planning crucial. Dan Diorio, Vice President of State Policy for the Data Center Coalition, stressed the industry's commitment to paying full service costs for electricity and argued for more efficient tariff provisions, warning that moratoriums and eliminated tax incentives could deter investment in Washington. Zach Baker, Regional and State Policy Director for the Northwest Energy Coalition, called for a comprehensive package of guardrails, referencing the stalled House Bill 2515, to manage the rapid growth and significant electricity demands of data centers by 2030.