Northwest Power Council grapples with data center impact

Data centers owned by global giants such as Amazon and Google have boosted coffers in Morrow and Wasco County in recent years. This has brought a boom in construction that boosts local companies and also provides some long-term jobs. Counties and cities have received tens of millions of dollars in tax revenue.

Gilliam and Sherman County have been looking on in envy. With rumors of a possible Amazon data center being built in Arlington, hopes have grown for additional employment opportunities in the area.

But in its recent monthly meeting, the Northwest Power and Conservation Council addressed pressing concerns regarding the region's energy landscape, particularly focusing on the escalating demands posed by data centers.

Established under the Northwest Power Act of 1980 and ratified by the legislatures of Idaho, Montana, Oregon, and Washington, the council's mandate encompasses the protection of fish and wildlife alongside the maintenance of an accessible and affordable power infrastructure.

The proliferation of data centers in the region has emerged as a significant challenge, eclipsing the energy requirements of the bygone Northwest aluminum industry. Projections indicate a staggering need for an additional 4,000 megawatts of generation-equivalent to roughly 20% of the current regional output-over the next five years to meet escalating demand. This forecast by the Pacific Northwest Utilities Conference Committee underscores the urgency of addressing the energy crunch.

The impact of data centers is starkly evident in Boardman, where their appetite for power has strained resources, leading to a surge in carbon emissions.

The Umatilla Electric Cooperative, once a small utility coop, has transitioned into one of the state's prominent polluters, with carbon emissions doubling consecutively in recent years. This trend, fueled by Oregon's tax incentives for data centers, underscores an alarming setback in the state's renewable energy goals – which are among the most ambitious in the country.

Amazon, leveraging substantial tax breaks, has spearheaded the establishment of sprawling data centers in areas like Boardman and Hermiston. Google has done the same in The Dalles. The need for significant amounts of water and emissions in air pollution have been seen as side-effects of growth.

Consequently, the state's efforts to combat climate change and transition to clean energy have been stymied, highlighting the deficiencies in its energy infrastructure.

Nancy Hirsch, the executive director of the Northwest Energy Act Coalition, emphasized the imperative of prioritizing energy efficiency and conservation measures in addressing unbridled demand. She advocated for a paradigm shift towards incentivizing consumers to reduce energy consumption, a strategy already prevalent in other regions. Hirsch urged the council to explore innovative solutions, stressing that substantial opportunities exist to enhance energy efficiency and alleviate the strain on the power grid.

The Oregon Legislature has discussed changes to tax incentives for data centers in recent sessions but has not offered any concrete solutions.

Small-scale, community energy production has been promoted as a growing priority and an alternative to large wind and solar projects.

The Community Renewable Energy Association (CREA) was formed in 2007 and works with local communities and counties to improve policies that support community renewable energy projects in Oregon. Former Sherman County Judge Mike McCarther has been involved, and current Judge Joe Dabulskis is on the executive board, as is Gilliam County Commissioner Pat Shannon. These small-scale facilities produce less than 80 megawatts of power. Examples include small hydropower plants within irrigation districts, methane-biodigesters on livestock farms, and geothermal plants making use of natural in-ground water temperatures.

There is a growing urgency to do something. Last year, Portland General Electric, along with two regional power agencies, released reports that significantly revised their projections for data center power consumption. According to estimates from the Bonneville Power Administration, the electricity demand from data centers in Oregon and Washington is anticipated to more than double by 2041. This surge in demand is projected to necessitate an amount of power equivalent to powering a third of all homes in the two states.