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Pressure from residents forces a U.S. energy utility to suspend negotiations with a data center that could require 500 megawatts by 2032 and demand new lines, reinforcements in the power grid, and large infrastructure investments.

Published on 21/06/2026 at 15:08
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A U.S. energy utility has suspended negotiations to supply a potential large-scale data center in Washington state after residents, customers, and local authorities demanded more transparency and public participation in the discussions.

The company responsible for the negotiation is Avista, an American company that produces, transmits, and distributes electricity, as well as provides natural gas. Based in Spokane, the utility serves approximately 422,000 electricity customers and 383,000 gas customers in Washington, Idaho, and Oregon.

Project could consume up to 500 megawatts

The client, whose identity was not disclosed, initially requested a power of 125 megawatts starting in 2029. The demand could gradually increase to reach 500 megawatts by 2032.

The megawatt is a unit used to measure electrical power. A project with a demand of 500 MW would require a very high amount of energy available continuously, in addition to possible expansions in transmission lines and other network structures.

Although the project has been linked to the advancement of digital services and artificial intelligence, there is no official confirmation that the data center would be specifically dedicated to AI. The exact location has also not been disclosed.

Avista halts negotiations after inquiries

Avista announced the pause on June 12, 2026, stating that it needs to consider community feedback and discuss with government bodies a clearer process for analyzing large energy consumers. The project has not been definitively canceled.

The utility also stated that its current customers should not pay for the works necessary to serve the data center. A potential contract would still depend on technical studies, network reinforcements, and approval from regulators.

With no identified company, defined address, or approved agreement, there are still no confirmed numbers on jobs, investments, tax revenue, or environmental impacts of the project.

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Fabio Lucas Carvalho

Journalist specializing in a wide variety of topics, such as cars, technology, politics, naval industry, geopolitics, renewable energy, and economics. Active since 2015, with prominent publications on major news portals. My background in Information Technology Management from Faculdade de Petrolina (Facape) adds a unique technical perspective to my analyses and reports. With over 10,000 articles published in renowned outlets, I always aim to provide detailed information and relevant insights for the reader.

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