Officials in Amazon's hometown of Seattle said they are close to passing a ban on the development of data centers, the type of real estate powering the artificial intelligence dreams of the e-commerce giant and other tech firms.
Seattle Mayor Katie Wilson said she will sign a moratorium temporarily banning the construction of these AI networks in the city. The move reflects a pushback from local residents concerned over climbing utility costs, a sentiment that's been spreading across the country.
Amazon, one of Seattle's biggest employers, does not have any current or under-construction data centers in the city, though it has several outside of the region in more rural parts of Washington.
The Seattle City Council late Tuesday unanimously approved a resolution and ordinance that pauses construction of data centers that require more than 20 megavolt-amperes, roughly equivalent to 20 megawatts, which can power up to 20,000 homes, in the city.
Once it's signed, Seattle will become the biggest city to ban data center development, following similar moratoriums approved in Denver and Minneapolis.
A growing number of U.S. cities, counties and states that are debating moratoriums, zoning changes and stricter oversight of data centers that critics say use too much water and electricity, risking shortages and higher bills.
Just in the past week, Ohio state officials rolled out new legislation to roll back the tax incentives offered to data center developers; leaders in West Haven, Connecticut, signed off on a one-year ban on the construction of these AI networks that have been criticized for using too much water and power; and DeKalb County near Atlanta this week extended its data center ban through Sept. 30.
Voters in Monterey Park near Los Angeles last week overwhelmingly approved what is believed to be the nation’s first successful ballot initiative to permanently ban data center development.
Major technology companies, including Amazon, Redmond, Washington-based Microsoft, Alphabet and Meta, are spending hundreds of billions of dollars this year on AI infrastructure, underscoring the depth of demand driving the sector.
Community blowback
Seattle's ordinance, passed as an emergency measure, would take effect immediately once signed by Wilson.
“I’m grateful to the city council for their work on this data center moratorium and I look forward to signing it into law," Wilson said in a statement.
The council’s vote follows reports that four companies approached Seattle’s City Light utility about building five data centers with combined demand of 369 megawatts, about a third of what the city uses on an average day. Amazon was not one of those companies, according to reports.
Dozens of people spoke in support of the moratorium Tuesday afternoon, including several Amazon employees, though no official technology company representatives spoke at the meeting.
"I believe tech workers have a role to play in this moment and we want city council members to include us in the process of developing equitable AI and data center policies," said Patrick Schloesser, a software engineer and member of Amazon Employees for Climate Justice.
Wilson said she will work with the council and community groups on a long-term approach that takes into account "the potential impacts of large-load data centers on utility rates and the environment."
Texas cracks down on data centers
Several U.S. communities and advocacy groups have called for data center operators to build and subsidize their own electricity sources, citing concerns over rising utility costs and pressures on existing power systems to handle rising demand.
Texas officials are moving to limit the effects of power-hungry data centers on consumers’ electric bills.
Gov. Greg Abbott on Wednesday directed the Public Utility Commission of Texas and the state’s Electric Reliability Council to immediately require data center operators to fully fund the costs of electric infrastructure needed to serve their operations.
The state agencies must identify additional actions under their authority to safeguard residential and small-business ratepayers, and submit a joint memorandum to the governor by July 17.
“Data centers must operate in ways that reduce costs for residential electricity customers, do not drain water needed for our communities, and take into consideration the needs of our neighborhoods,” Abbott said in a statement.
The governor also plans to work with the state Legislature in its next session to put those and other protections into law.
Not all data centers
Seattle Councilmember Eddie Lin said the city has received “tens of thousands of messages” from Seattle residents supporting the ban.
“Large AI data centers are popping up across the country, driving up utility costs for residents and small businesses while creating air, water, and noise pollution,” said Lin, who sponsored the freeze along with council President Joy Hollingsworth.
Lin noted that Seattle has dozens of smaller colocation facilities that provide data processing for 911 call centers, hospitals, universities and other research institutions.
The moratorium won't affect those facilities, which include a data center operated by Tierpoint in the Queen Anne district.
“We can support these essential services while also developing appropriate safeguards around mega AI data centers locally and regionally,” Lin said.