Data centers in Washington

📜 State laws

SB 6231 (2026): no more tax break for replacing servers · April 1, 2026
Governor Ferguson signed SB 6231 on April 1, 2026 (Chapter 266, 2026 Laws). Starting July 1, 2026, data centers no longer get a sales tax break when they buy replacement servers. The state also stopped giving the tax break to old buildings that are fixed up (refurbished) into data centers. The tax break for building a brand-new data center in a rural county stays. The bill passed narrowly: 26-23 in the Senate and 51-46 in the House. Source

HB 2515 (2026): statewide rules for big power users did not pass · March 12, 2026
HB 2515 would have covered 'emerging large energy use facilities', including data centers that use more than 20 megawatts. Utilities would have had to file special price lists (tariffs) so data centers pay their own costs and do not shift them to other customers, and set rules for cutting their power in an emergency. It passed the House 51-41 but did not pass the Senate before the session ended on March 12, 2026. The Senate version was SB 6171. Lawmakers are expected to try again in 2027. Source

SB 5982 (2026): big users who buy their own power must meet clean energy rules · March 24, 2026
Washington's Clean Energy Transformation Act (CETA, 2019) says electricity must be carbon-neutral by 2030 and 100% clean by 2045. SB 5982 (Chapter 181, 2026 Laws, in effect June 11, 2026) makes clear that businesses that buy power from someone other than their utility, or make their own power, must meet the same rules. A lawyer's summary says this covers data centers. The Utilities and Transportation Commission (UTC) must write reporting rules and enforce them. Small backup generators used only for emergencies do not count. Source

Governor's Data Center Workgroup (Executive Order 25-05) · Dec 1, 2025
On February 3, 2025, Governor Ferguson created a Data Center Workgroup led by the Department of Revenue. It sent a preliminary report to the governor on December 1, 2025. It adopted 8 of 9 ideas, including: keep the climate laws working for data centers, make new large loads pay for the power plants and power lines they need, require data centers to report water use every year, study water, air and tribal impacts, and create a state group to help build power lines. An idea to extend the tax break statewide, tied to a clean energy requirement, was dropped. The final report waits for consultation with tribes to finish. Source

💡 Who pays for the power

State utility commission is writing guidance on data center power (UE-260162) · Aug 12, 2026
The UTC regulates the private (investor-owned) utilities: Puget Sound Energy (PSE), Avista and Pacific Power. In 2026 it opened case UE-260162 to look at how these utilities should connect large loads like data centers: rates, who pays which costs, connection conditions, flexible use and customer protections. It held workshops on April 27 and August 12, 2026. At the end it plans to issue a policy statement with guidance to protect other customers. The UTC said its utilities have not seen much large load growth yet. The UTC does not set rates for PUDs or city utilities. Source

PSE asks for big rate increases in 2027-2029 · Feb 27, 2026
On February 27, 2026, Puget Sound Energy asked the UTC to raise electric rates by 15.15% in 2027, 3.74% in 2028 and 8.70% in 2029 (cases UE-260005, UG-260006 and UE-260113). It also asked how to account for power grid upgrade costs. The UTC has not decided. The UTC's notice does not tie this request to data centers. Comments can be sent online, by phone at 888-333-9882, or by email to comments@utc.wa.gov. Source

Seattle City Light: higher rates for new data centers · July 21, 2026
On July 21, 2026 the Seattle City Council voted unanimously for a new customer class for data centers that are a new large load (Ordinance 127473, Council Bill 121231). New and growing data centers will pay higher rates meant to cover the new power sources and power lines they need, so homes do not pay those costs later. It also applies to data centers outside Seattle that get power from City Light. Home rates are still expected to rise almost 10% this year and next, which City Light says is for other reasons. Source

Grant PUD (Quincy, Moses Lake): data centers are 37% of power use · Aug 28, 2026
Grant PUD serves 8 data center operators. In 2025 they used about 280 average megawatts, about 37% of all power used in Grant County. Grant PUD says homes, farms and small businesses get first access to cheap power from its two dams, and large users like data centers must pay for new power and power lines they need. In May 2026 staff proposed a separate 'high-density compute' rate class for data centers and crypto mining, plus a fee for big customers who reserve power they do not use yet. Commissioners have not decided. Grant PUD had about 800 megawatts of large-load requests waiting. Source

Chelan PUD: data centers pay for their own substation and power · June 2025
Chelan PUD uses a large-load contract that makes big customers cover their costs and risks. For Microsoft's Malaga data center, Microsoft paid up front for the $86.5 million Jumpoff Ridge substation. The 2025 contract supplied up to 18 megawatts of extra hydropower at market prices for five months; Chelan PUD did not promise power for 2026-2040. Source

Who sets power rates in Washington · Dec 1, 2025
Many Washington data centers get power from public utility districts (PUDs) like Grant, Chelan and Douglas PUD, or from city utilities like Seattle City Light. Their elected commissioners or city council set rates and decide which big customers to serve; you can speak at their public meetings. The UTC only sets rates for PSE, Avista and Pacific Power. The Data Center Workgroup asked both the UTC and the public utilities to write model rates that make new large loads pay for the costs they cause; Chelan PUD opposed a statewide model, saying local boards should decide. Source

💵 Tax breaks

Sales tax break for data centers in rural counties · July 1, 2026
Data centers of at least 100,000 square feet in one of Washington's 29 rural counties do not pay state and local sales tax on servers and power equipment, or on the labor to install them. New data centers must meet a green building standard. Construction must start before July 1, 2035; no new certificates after July 1, 2036. Since July 1, 2026, replacement servers and fixed-up old buildings no longer qualify (SB 6231). Data centers and tenants reported about $584 million in tax savings from 2012 to 2023, and over $118 million in 2023 alone. Source

Sales tax break for data centers in King, Pierce and Snohomish counties · July 1, 2026
Since 2022, data centers in counties with more than 800,000 people (King, Pierce and Snohomish) can also skip sales tax on servers and power equipment, if they meet job, size, power and green building rules. Only six certificates a year are given out, first come, first served. No new certificates after July 1, 2028; they end July 1, 2038. Since July 1, 2026, fixed-up old buildings no longer qualify. Source

🤐 Secret deals and public records

Washington's Public Records Act (RCW 42.56) · 2026
Any person can ask for public records from a city, county, port, PUD or state agency. You do not have to live in Washington or say why. The agency must answer within 5 business days: give the records, send a link, or confirm it got your request and give a fair estimate of when it will answer. Ask for specific records (for example, all emails about a data center project, or about a company name). If the agency says no, you can sue within one year. Source

No state rule on secret deals (NDAs) with data centers · 2026
We found no Washington law that limits secret deals (NDAs) between local governments or utilities and data center companies. A secret deal cannot override the Public Records Act; records can be held back only if the law allows it. You can ask your city, county, port or PUD for any NDA it signed. Source

💧 Water

Who approves the water a data center uses · 2026
The Department of Ecology issues water rights. A data center needs its own water right to take water from a river, stream, lake or (beyond small amounts) a well. If it buys water from a city or water district, it does not need its own water right, as long as the provider has enough rights. So the city council or water district often decides. Source

No statewide water reporting for data centers yet · Dec 1, 2025
The governor's Data Center Workgroup found data centers can need a lot of water, depending on how they are cooled, and that water discharges to the Columbia River have temperature limits to protect salmon. It recommended that data centers report their water use to the state every year, and that Ecology study water, air and tribal impacts. Industry members opposed the water reporting. No law requires it yet. Source

🌫️ Air and generators

Air permits for backup diesel generators · 2026
Data centers need an air permit (a 'notice of construction' approval) before they build or expand, because of their large diesel backup generators. Ecology issues these permits for data centers in Quincy, the Wenatchee area, Moses Lake and other counties without a local clean air agency; elsewhere the local clean air agency does it. Ecology looks at health risks from diesel soot and nitrogen dioxide. In Quincy it adds up pollution from all data centers together. Permits are posted for public comment. Source

State council decides big power plants · 2026
The Energy Facility Site Evaluation Council (EFSEC) must approve new nuclear plants and non-nuclear thermal power plants (such as gas plants) of 350 megawatts or more. Developers of some other projects, like solar, storage and power lines of 115,000 volts or more crossing more than one city or county, can choose to go to EFSEC instead of local governments. Smaller gas plants for data centers are permitted locally and by air agencies. Source

🙋 How to have your say

Who decides a data center near you · 2026
In Washington, cities and towns decide land use inside their limits, and counties decide for land outside them. There are no townships. PUDs or city utilities decide whether to supply the power; both have elected boards with public meetings. Ecology or a local clean air agency issues the air permit. Source

How local pauses (moratoria) work · 2026
A city or county can pause new data centers right away. If it does so without a hearing first, it must hold a public hearing within 60 days. A pause can last up to 6 months, or up to 1 year with a work plan. It can be renewed for 6 months at a time after another hearing. These hearings are a chance to speak. Source

Appealing a permit: 21 days (Land Use Petition Act) · 2026
To challenge a local permit or land use decision in court, you file a land use petition in superior court. It must be filed and served within 21 days after the decision is issued (3 days after it is mailed, if mailed). Source

Challenging a new zoning rule: 60 days (Growth Management Hearings Board) · 2026
If a city or county changes its comprehensive plan or zoning rules (for example, to allow data centers), you can ask the Growth Management Hearings Board to review it. The petition must be filed within 60 days after the city or county publishes the change. Source

Comment on the environmental review (SEPA) · 2026
Most big projects get a State Environmental Policy Act (SEPA) review. The lead agency, usually the city or county, posts the SEPA notice and takes comments for a set period. Ecology's online SEPA Register lists notices statewide; search for 'data center'. Source

Comment to the state utility commission · July 28, 2026
You can comment on UTC case UE-260162 (large loads and data centers) and on PSE, Avista or Pacific Power rate cases using the UTC's online form, by phone at 888-333-9882, by email to comments@utc.wa.gov, or at public comment hearings. Name the case number. Source

Ask for records about a data center · 2026
Send a written request to the public records officer of your city, county, port or PUD. Ask for specific records, such as development agreements, NDAs, emails with a named company, power or water requests. The agency must answer within 5 business days. Source

🧾 Help with your bills

Energy bill help (LIHEAP) · 2026
The Department of Commerce runs LIHEAP through local community action agencies. It can help pay your utility bill and fix or replace an unsafe heating system. Any heat source counts (electric, gas, propane, oil, wood). You can get it once per program year (October to September). Use the LIHEAP map on the Commerce page to find your local agency and make an appointment. Source

Your utility's own bill help · 2026
Utilities also run their own programs. For example, PSE's Home Energy Lifeline Program (HELP) gives extra bill help beyond LIHEAP, and you do not need to owe money to apply. Avista and Pacific Power have programs too. The UTC page lists them. Source

📞 Who to contact

Washington Utilities and Transportation Commission (UTC) · Oct 7, 2026
Sets rates for PSE, Avista and Pacific Power; runs the large-load case UE-260162; takes public comments and complaints. Source

Department of Ecology · Oct 7, 2026
Air permits for data center generators (outside local clean air agency areas), water rights, water discharge permits, SEPA Register. Source

Department of Commerce · Oct 7, 2026
Runs LIHEAP energy assistance and the state energy office; helps cities and counties with growth management planning. Source

Department of Revenue · Oct 7, 2026
Runs the data center sales tax breaks and leads the governor's Data Center Workgroup. Source

Energy Facility Site Evaluation Council (EFSEC) · Oct 7, 2026
Decides on large power plants (350 MW+ thermal, nuclear) and some power lines and clean energy projects. Source

Attorney General: Open Government · Oct 7, 2026
Guidance on the Public Records Act and Open Public Meetings Act. Source

Washington State Legislature · Oct 7, 2026
Bill text, status and hearings; data center bills are expected again in the 2027 session. Source

Grant PUD · Oct 7, 2026
Power for Quincy and Moses Lake data centers; elected commission sets rates. Source

Seattle City Light · Oct 7, 2026
City-owned utility; new data center rate class (Ordinance 127473). Source