You can’t blame data centers in Seattle for our skyrocketing electricity prices – GeekWire

After a vague report that some companies wanted to build “big” data centers in Seattle, Mayor Katie Wilson is evaluating the establishment of new data centers.

This seems to be the standard game, the hypocrisy we have come to expect from our politicians. Distractions from tough issues, like making sure we don’t follow Cleveland’s history as the economy deteriorates.

It’s easy to block data centers if you don’t have one (hello Maine!). Seattle’s high real estate and electricity prices mean that “big” data centers in the city can’t compete. We have long had spaces for local businesses, but they are small by today’s standards.

Banning large data centers in Seattle is like banning cows from grazing in midtown Manhattan. Seattle will not only attract AI and hyperscaler data centers that require a lot of land and power. The Texas panhandle is a better place to put them.

Using data centers to complain about data centers (by posting on Facebook) carries more than hypocrisy. Wouldn’t a sincere commitment to “environmental justice” and “economic sustainability” mean we don’t use any bad data centers? The mayor can leave all political messages online. Or order city departments to stop using any data center services.

(Ironically, the City of Seattle’s data center is in Spokane. Which says something about the competitiveness of data centers in Seattle and/or the city’s tendency to support local businesses.)

Production Methods

Comrade Katie, a self-proclaimed socialist, has seen the socialist goal of owning the means of production, at least our city-owned utilities. But ownership comes with accountability and responsibility.

By drawing a line against new data centers, you will remove the easy scapegoat for his performance. No blaming Big Tech. No targeting at AI. What remains is a testable proposition: will Seattle have affordable, reliable energy?

Other challenges lie ahead.

Affordable and Reliable Power

Seattle City Light already charges some of the highest electricity rates in Washington, a state that enjoys low energy costs due to its abundance of electricity.

Mayor Wilson’s first move was to fire the head of City Light and appoint a replacement with no operational experience. After a back-and-forth between staff and the City Council, the search for new leadership has begun. No explanation is given as to why the former CEO was fired or what the mayor’s strategy is for City Light (or, for that matter, anything economic).

Seattle City Light has announced rapid rate increases, above inflation, in the coming years:

From 1 January 2026, you will see the pre-approved rate increase of 5.4% start appearing on your bill.

Business customers can expect to see an overall building increase of between 4% to 7%, depending on their customer segment and usage profile.

Looking ahead to 2027 and beyond, we expect an annual rate increase of 7 to 10%

The utility also needs to double its capacity—from 2,000 to 3,800 megawatts in the next seven years—independent of any data centers. A growing population, electric vehicles, heat pumps, and widespread electrification are all driving load growth.

Deft management will be required to keep our grid affordable and reliable. Setting up new data centers isn’t enough to keep the lights on in Seattle, and non-bumper sticker solutions seem easy on the political spectrum.

Clean Water on Tap

When looking at city-owned utilities, Seattle Public Utilities faces its biggest challenges. The agency recently received a stunning vote of no confidence in its ability to provide its most basic service: water.

Cities east across Lake Washington, organized as the Cascade Water Alliance, receive water from Seattle’s lakes. They have concerns about investment and maintenance in Seattle, and after much analysis and discussion, the Eastside is switching to get its water from Tacoma:

“[Tacoma Public Utilities’] the proposal provides long-term supply assurance, significant financial benefits, and the opportunity to transition to a regional water system.”

You can read a lot between those lines. The fact that it will take 15 years to switch Eastside taps to Tacoma water raises serious concerns about Seattle’s ability to deliver.

Besides maintenance concerns, this customer exodus also means that the small remaining ratepayer base will face the fixed costs of the system, pointing to higher future water bills for Seattleites.

There are no excuses

If data centers don’t come—and they can’t be blamed—then rising electricity prices, power shortages, and reliability issues are up to the mayor. The same goes for water.

Getting good at data centers is easy. Making the difficult and unsatisfying trade-offs to ensure our city’s services are delivered is the hard part.

So, shut down by all means the big data centers that never came. Clear the field. Eliminate distractions.

We can focus entirely on how our city services are performing under Mayor Wilson.