AI-led expansion of data centers in rural America sparks debate among locals over its advantages

A Data Center Boom Transforms Rural Quincy, Washington

In the heart of rural America, Quincy, Washington, has been undergoing a significant transformation, thanks to a data center boom driven by the surge in artificial intelligence. Over the past two decades, the construction of 29 large data centers in Grant County, where Quincy is situated, has resulted in a remarkable increase in property tax revenue.

This windfall has funded new schools, hospitals, fire stations, and recreational facilities like a deluxe soccer complex, significantly enhancing the local economy and quality of life without raising taxes for residents. The ongoing operations provide skilled jobs, with the data center in Quincy employing 250 people, and attracting committed long-term leases from tech giants such as Microsoft and Amazon [1][2].

However, this boom presents challenges primarily related to energy consumption and water use. Data centers are highly energy-intensive, consuming electricity equivalent to tens of thousands of homes, which strains the regional electrical grid rooted largely in hydroelectric power from the Columbia River. The dependence on fossil fuel backup energy sources, as some power may come from open market purchases, raises concerns about sustainability and the dependence on non-renewable energy sources [1][2][4].

Water use by data centers, while less directly impactful on residential water bills, competes with local agricultural and community needs and requires careful governance to ensure it does not deplete scarce resources. Current assessments indicate water cost impacts on households are minimal or "round to zero," but private businesses may face increased costs [1][2][4].

The tension between economic benefits and environmental strain is prompting government action. Washington Governor Bob Ferguson has convened a workgroup to evaluate the economic and environmental effects and devise policy recommendations to balance growth intentions with sustainability goals, especially in the context of national pressure to expedite data center construction for AI development [1].

The data center boom in Quincy also offers opportunities beyond economic growth. Thousands of jobs in construction are related to the data center building boom, and the high school in Quincy has a new vocational program that includes a data center technician track, allowing students to earn a certificate and work in the data centers directly upon graduation [1].

The community experience exemplifies the complex trade-offs rural America faces as data centers expand—a microcosm of both opportunity and sustainability challenges. Quincy's data centers are responsible for providing infrastructure for various online services, such as ChatGPT and online medical records, underscoring the critical role these centers play in the digital age [1].

As the electrical energy need for data centers expands, there are concerns about the potential need for non-renewable energy sources. Local environmental activist and former mayor Patty Martin worries about the impact of increasingly less snowpack on the Columbia River, which supplies cheap, clean, abundant energy and water for cooling the data centers. Local officials are pushing to make an exception for natural gas to provide additional power for data centers, and Martin worries that could undermine the state's progress on climate action [1].

The potential slowdown in data center construction is a concern for some residents. Pat Gallatin, an electrician who came to Quincy for job opportunities building data centers, and Sharyl Smith, the owner of Monkey N' Around Pizza, are nervous about a potential building slowdown due to their reliance on construction workers for business [1].

Despite these challenges, the long-term economic impacts of the data center boom in Quincy are undeniable. The community has seen substantial tax revenue increases, job creation, and enhanced public infrastructure, transforming the rural town into a hub for technological innovation.

[1] The Spokesman-Review [2] The Seattle Times [4] The Washington Post

AI-led expansion of data centers in rural America sparks debate among locals over its advantages