The artificial intelligence boom could lead to large-scale construction within Seattle itself: four companies are considering building five major data centers. Their combined peak power demand could reach 369 megawatts, roughly one-third of the city’s average daily consumption. By comparison, at full capacity these new facilities would use nearly ten times more electricity than all thirty existing data centers in the city.
Seattle City Light, the municipal utility receiving these requests, is expressing serious concern. This city-owned and -operated utility focuses on public interest, low rates, and clean energy, unlike private utilities in other states. Such a sharp surge in demand could strain the utility’s engineering and management resources, threatening reliable power for existing Seattle residents and businesses. The utility also warns that connecting such capacities would require substantial investment to upgrade the grid infrastructure.
Major tech companies’ interest in Seattle is driven by a global shortage of available power for data centers. Traditionally, they were built where electricity was cheap, but now many regions simply don’t have enough. Seattle has a unique advantage for a large city — its own hydropower. Power comes from hydroelectric dams on the Skagit River in Washington and the Pend Oreille in Idaho and Montana, transmitted to the city via high-voltage lines and integrated into the broader Northwest grid. However, in recent dry years that power hasn’t always been sufficient, forcing the utility to buy on the wholesale market. In addition, by 2033 the city already needs to nearly double generation under policies in the “Seattle Climate Plan.” These measures include electrifying buildings by phasing out natural gas in new construction, switching to electric vehicles, and retrofitting existing buildings, all of which create substantial additional load on the power system.
To protect ordinary consumers from potential rate increases, City Light — accountable to the city council and the mayor — is radically changing its approach to large customers. The new policy will likely require developers to source power outside the city system and to fully pay for all necessary grid upgrades. “These costs cannot fall on ordinary customers,” emphasized a utility spokesperson.
So far, companies interested in building have already received preliminary estimates from City Light of the costs of the needed grid upgrades. Updated standard contracts for large customers will soon be sent to the mayor’s office for review. Market analysts note that data center operators often file far more proposals than they ultimately build while seeking the best terms.
Companies are expected to make final decisions within the next two to three months on whether they will submit formal applications to connect to Seattle City Light’s grid. For now, it is unclear whether these ambitious plans will become reality or remain in negotiation.
Based on: Five large data centers eyed for Seattle