Understanding Data Centers in North Central Washington

About this article: The Chelan Douglas Regional Port Authority invited participating organizations to respond to a common set of questions regarding data centers in North Central Washington. The summary below highlights the common themes that emerged from those responses. Complete responses from each participating organization are available on the accompanying Data Center Information webpage.

Over the past several years, data centers have become one of the most discussed forms of economic development in communities across the country. As interest in artificial intelligence, cloud computing, and digital infrastructure continues to grow, so do questions about how data centers impact local economies, power systems, water resources, public infrastructure, and workforce development.

To help provide accurate information directly from the organizations involved, the Chelan Douglas Regional Port Authority invited local data center operators, public utility districts, water districts, and the regional sewer district to participate in a community Q&A. Rather than speaking on behalf of these organizations, we asked them to share their own perspectives on topics ranging from economic impact and job creation to power supply, water use, infrastructure investment, and long-term planning.

The responses revealed a consistent theme: successful data center development requires extensive coordination, years of planning, and significant investments in the infrastructure that benefits both existing customers and future growth. Perhaps most importantly, the responses demonstrated that responsible growth depends on close collaboration among data center operators, utilities, local governments, and the skilled workforce that builds and maintains this infrastructure. The following summarizes some of the key insights shared by the organizations participating in this effort.

Microsoft, Sabey, and Salcido Enterprises Data Centers

The participating data center operators described North Central Washington as uniquely positioned to support digital infrastructure because of its reliable power system, access to water, robust fiber connectivity, available industrial land, low natural disaster risk, and skilled workforce. While each company has its own business model and history, a common theme emerged: successful data center development requires years of planning and close collaboration with utilities and local partners before construction ever begins. The operators emphasized that modern data centers are long-term investments designed to evolve over decades as technology advances, rather than facilities that become obsolete when computing equipment changes.

Beyond the facilities themselves, the operators highlighted the significant economic impact data centers have throughout the region. Their investments include billions of dollars in private capital investment, hundreds of construction jobs, family-wage careers in operations and maintenance, and extensive partnerships with local contractors, suppliers, and service providers. They also pointed to substantial local tax revenue, workforce development initiatives, nonprofit partnerships, and infrastructure investments that extend well beyond their own operations. A recurring theme throughout the responses was that responsible data center development depends on investing in the infrastructure needed to support growth while creating long-term economic prosperity for the communities in which they operate.

Chelan PUD

One of the most common questions we hear is, “Are data centers using all of our local hydropower?” The responses from Chelan PUD help explain how electricity is actually planned, procured, and delivered to large industrial customers. Chelan PUD emphasized that serving large industrial customers is the result of years of planning, engineering studies, and coordination—not simply connecting a new customer to the existing electrical system. One of the key takeaways was that the majority of electricity serving local data centers is supplied through market-based power purchases from outside the region rather than relying solely on Chelan PUD’s local hydropower resources. Before new electrical service is provided, utilities evaluate system capacity, complete engineering studies, identify any necessary infrastructure improvements, and ensure reliability for existing customers remains the top priority. The responses highlighted that responsible growth depends on careful long-term planning, significant infrastructure investment, and close collaboration between utilities and large customers.

East Wenatchee Water District and Malaga Water District

Both East Wenatchee Water District and Malaga Water District emphasized that responsible growth begins with careful planning and engineering long before a new customer is connected. The districts evaluate water rights, available supply, projected demand, hydraulic capacity, storage, and distribution infrastructure to confirm sufficient resources exist while protecting service for existing customers. In Malaga, the District even conducted an extended aquifer pump test to verify the groundwater supply could meet both current and future demand before additional data center development proceeded. Both districts also stressed that developers are responsible for funding the infrastructure needed to serve their projects. Collectively, data center projects have invested well over $100 million in regional water infrastructure, including new wells, reservoirs, transmission mains, pump stations, and advanced operational systems. These improvements expand system capacity, improve reliability and fire protection, and position the region for future residential, commercial, and industrial growth—all while helping spread the cost of future infrastructure improvements across a growing customer base while reducing the financial burden on existing ratepayers. The districts also noted that large water users are carefully monitored and managed to ensure water use remains within approved allocations and does not negatively impact existing customers.

Douglas County Sewer District

The Douglas County Sewer District explained that serving large industrial customers such as data centers begins long before construction, with careful planning to ensure sufficient system capacity exists to accommodate future growth. The District noted that, unlike many industrial facilities, data centers generate wastewater seasonally compared to many industrial facilities. Capacity is reserved year round to ensure treatment is available at time of discharge. The District also noted that new development is responsible for funding the infrastructure improvements needed to serve its facilities, helping expand and strengthen the regional wastewater system for future customers.

IBEW Local 191

The International Brotherhood of Electrical Workers (IBEW) emphasized that data center development has created significant long-term career opportunities for skilled trades throughout North Central Washington. Beyond supporting electricians, these projects generate sustained work for laborers, equipment operators, carpenters, ironworkers, pipefitters, sheet metal workers, painters, and many other construction professionals. The IBEW also highlighted the important role data centers have played in expanding apprenticeship opportunities, developing the next generation of licensed electricians, and creating family-wage careers with benefits that support local families and strengthen the regional economy. A recurring theme throughout the responses was that data center construction has helped build a highly skilled local workforce capable of supporting complex infrastructure projects both within the region and across the country.

In Summary

One of the clearest themes that emerged from every participating organization was that responsible growth does not happen by accident. It is the product of years of planning, collaboration, engineering, and investment. While some regions across the country face challenges related to power availability, water resources, or infrastructure capacity, North Central Washington has taken a deliberate approach that emphasizes long-term planning before development occurs.

The organizations participating in this effort described a system in which infrastructure needs are identified and evaluated years in advance, utility capacity is evaluated before service commitments are made, and major infrastructure improvements are often funded by the developments creating the demand. In our region alone, data center projects have contributed hundreds of millions of dollars toward private investment and have helped fund substantial improvements to water, wastewater, and electrical infrastructure that will serve the community for decades to come. The responses also highlighted the importance of a highly trained local workforce, with apprenticeship programs and skilled trades playing a critical role in designing, constructing, and maintaining these complex facilities.

As the region’s lead economic development organization, the Port’s role is to support projects that create long-term economic opportunity while ensuring growth occurs responsibly. That includes asking questions, encouraging transparency, and helping connect the public with accurate information from the organizations directly involved. Data centers are not the right fit for every community, and every region has unique opportunities and constraints. The information shared through this process helps explain why North Central Washington has become a location where responsible data center development can occur through long-term planning, infrastructure investment, and collaboration.

This article summarizes the common themes that emerged from the participating organizations. Readers interested in exploring each organization’s complete responses, along with the original questions, are encouraged to visit the dedicated Data Center Information page on the CDRPA website. The complete responses can be found at www.cdrpa.org/ncw-data-centers

Prepared by: Stacie de Mestre
Director of Economic Development and Capital Projects
Chelan Douglas Regional Port Authority
Stacie@cdrpa.org