Utility warns moratorium could halt Spokane-area data-center projects, urges coordinated planning

A utility representative told Spokane council members that a moratorium on data-center permitting would immediately halt exploration of potential projects and could prevent the region from realizing benefits from them.

The representative said the company is trying to balance customer protections and innovation, and that the ability to evaluate proposed facilities is essential. "As soon as a moratorium goes into place we lose our ability to even explore those types of things," the representative said, arguing that the utility needs space to determine which proposals make sense.

Why it matters: City officials pressed the presenter about water and environmental oversight, noting that Spokane is a water purveyor and holds senior water rights in parts of the basin. Council members said local planning and developer engagement are necessary because federal rules and the Clean Water Act often operate reactively and may not prevent local impacts without proactive coordination.

Key facts and claims: The presenter said the number of prospective projects is fluid but estimated "10 or more" potential data centers in the pipeline, a figure that can change day to day. The utility described long lead times for specialized equipment—"four or five years" for items such as transformers or large circuit breakers—creating a multi-year timeline to add substantial capacity. The representative also said serving very large sites could require decades of transmission build-out unless developers invest heavily in the infrastructure.

On water, council members and the presenter outlined multiple regulatory touchpoints: the state Department of Ecology, federal rules including the Clean Water Act, and permitting processes for water supply or discharge. One council member cited Idaho legislation that can require a data center to take service from a public water system rather than drilling an exempt well as an example of a statutory approach to limit new groundwater withdrawals.

The presenter argued that some customer benefits can arise when large new load spreads fixed system costs. Using the example of a capital investment in billing or computer systems, the representative said adding load could over time reduce per-megawatt cost pressure on existing customers, and that selling unused transmission capacity to a data center can reduce rate pressure for others.

Community concerns were raised about siting and local disruption. Council members asked whether developers and the utility are considering equity and community impacts when choosing locations. The presenter said developers’ proposals have matured aesthetically and that the utility is focusing on steering projects toward locations that minimize community impact and avoid unnecessary transmission expansion.

Next steps: The utility encouraged developers to consult with the city and mayor’s office and said the company will continue to engage with environmental groups and regional stakeholders. Council members highlighted an upcoming Spokane River forum and related events as venues for further conversation. The briefing ended with the utility offering to be a resource for deeper engagement and the council adjourning without taking formal action.

Attributions: Quotes and paraphrases come from the utility representative (identified in the meeting as the company presenting to the council) and multiple council members, including Councilman Riddick and Council Member Cathcart.