
Data Centers Boost Quincy, Washington; Spokane and Seattle Enact Moratoria
The town of Quincy, Washington, has experienced an economic boom and reduced property taxes due to the presence of data centers, with Microsoft being a significant contributor. Despite this success story, other Washington cities like Spokane and Seattle have enacted one-year moratoria on new data center developments due to concerns about energy and water use.
The city of Quincy, Washington, has seen substantial economic benefits, including increased property values, lower property taxes, and new public infrastructure, attributed to the presence of data centers. Microsoft established its first data center in the area over two decades ago, drawn by inexpensive land and existing fiber infrastructure from Grant County PUD. Microsoft recently awarded $210,000 in grants to local organizations, highlighting its positive impact.
Rep. Alex Ybarra, R-Quincy, notes that the poverty rate in the town has significantly dropped, and many agricultural workers now hold year-round jobs at data centers. He also states that data centers in Quincy use only 5% of the local water supply, largely due to Microsoft's implementation of a water-recycling closed-loop system. The National Taxpayers Union, represented by President Pete Sepp, used Quincy as an example of successful data center integration, cautioning other communities against rejecting such developments outright.
However, widespread opposition to data centers persists elsewhere, particularly concerning environmental impacts and strain on the power grid. Washington lawmakers had attempted to pass legislation requiring data center operators to cover energy deployment costs, but the bill failed in the Senate after Microsoft's opposition. In recent actions, the Spokane City Council imposed a one-year moratorium on new data centers following Avista Utilities' pause in negotiations with a large customer, and the city of Seattle also enacted a one-year ban on large-scale data centers, driven by significant public feedback.