Hermiston approves ASR well contract and water service deal with Amazon; city says Amazon will pay construction costs and same water rates

Hermiston city leaders on Feb. 24 approved two related measures to provide water to planned hyperscale data center campuses: a contract award to drill an aquifer storage and recovery (ASR) well and a water‑service agreement with Amazon Web Services.

Assistant City Manager Morgan told the council the agreements will allow the city to pump river water in winter, treat it, and inject it into a deep basalt aquifer for later seasonal use by data centers. Morgan said Amazon will pay for the construction and that the company will “pay the exact same water rates as all other customers within the community.” Councilor Hayward recused himself from the votes because he works for Amazon Web Services.

Phase 1 of the project — the subject of Resolution 23‑55 — authorizes award of a drilling contract for an ASR well to be drilled roughly 1,500 feet deep between two Amazon campuses now under construction. The staff report shown to council estimated a drilling contract award of about $6.1 million and total phase‑1 costs near $8.1 million, all to be paid by Amazon. The council voted to adopt…