Washington Offers Tax Breaks to Data Centers Hurting Green Energy Goals

Recent investigations by The Seattle Times and ProPublica reveal a significant gap in understanding the energy demands of data centers in Washington State, despite forecasts from regional power planners. While Washington ranks among the top ten states for data center markets, the state's specific energy needs and the effects of tax incentives on the power grid remain largely unexamined. Governor Jay Inslee's office acknowledges the urgency of increasing renewable energy sources, yet the rapid growth of data centers poses challenges to the state's energy landscape. Data centers have dramatically increased electricity consumption in Washington, with an analysis indicating that the power demand from 2007 to 2022 has now reached levels comparable to that of data centers. In Douglas County, data centers, including cryptomining operations, accounted for approximately 39% of the county's electricity usage in 2022. Meanwhile, Seattle's smaller data centers consumed at least 10% of the city's power, enough to supply around 90,000 homes. The shift in Washington's energy supply is notable, with hydropower's share declining from two-thirds in the early 2000s to 55% in recent years. This decline coincides with an increase in reliance on natural gas and other unspecified fuels, which now make up about a quarter of the state's electricity. In Grant County, over 80% of electricity came from unspecified sources in 2022, raising questions about the sustainability of this energy model. As the power and conservation council predicts that data centers could surpass the annual electricity consumption of Puget Sound Energy by 2029, lawmakers are reconsidering the state's approach to supporting the industry through tax breaks. The implications of this growth on Washington's clean energy goals and the ability of utilities to meet demand are becoming increasingly critical.