We had a fabulous time at Business After Hours with Events at Sunset! You can check out their beautiful event space at 915 Bypass Hwy., Richland, WA 99352.

This is Part 2 of the series on data centers in the Tri-Cities and Washington State. Part 1 explained what data centers are and why interest in them is increasing. This article examines the economic and business factors behind data centers, especially as artificial intelligence boosts demand for computing power. Part 3 will cover the main risks related to electricity, water, land use, and community impact.
The main advantage is investment. Large data centers can generate significant private spending on land, construction, equipment, utilities, and specialized systems. This expenditure supports contractors, engineers, electricians, suppliers, security firms, and other local businesses. In areas where this growth has already happened, like Grant County, it has also raised tax revenue and property values.


For the Tri-Cities, this is important because the region already has many of the qualities needed for these projects. It has available land, strong energy connections, research capacity, and a reputation for science and technology. A data center can also show that the region is ready for other advanced industries, including AI services, energy innovation, and professional services that want to be close to digital infrastructure. In this way, a data center can support a wider business recruitment strategy.


There are also advantages for the public and workforce. Even when projects benefit from some tax incentives, they still create value through land, buildings, construction activities, and other taxable business operations. Data centers additionally generate skilled jobs in areas like electrical work, HVAC, IT, networking, and facility management. Although they may not employ as many people long-term as a large factory, the jobs they provide are often specialized and better paid. They can also support the case for technical training and research partnerships related to energy and technology.
​

The bigger opportunity is that data centers can help position the Tri-Cities within a rapidly growing part of the digital economy. As AI-driven demand rises, communities able to support this infrastructure may gain a competitive edge in future business growth. However, the benefits only matter if the region manages the costs effectively. In Part 3, this series will explore the main risks communities should understand before deciding how much data center growth to support.

This article does not represent an endorsement of Data Centers, it is merely informational

Congratulations to Steptoe Fit Body Boot Camp on a fantastic ribbon cutting ceremony yesterday! You can find them at 8804 W. Victoria Ave., Kennewick, WA 99336.

This article begins a short series about data centers in the Tri-Cities and Washington State. As interest in data centers, artificial intelligence, and rising power demands increases, it's important to understand what these facilities do and why communities are paying attention. This initial article covers the basics, while future parts will explore the economic benefits, risks, and policy issues that local leaders need to consider.

Online data centers are large facilities that store and process digital information. They support cloud services, banking, video streaming, government systems, medical records, and business software. These centers are becoming increasingly vital as artificial intelligence boosts the demand for computing power. This is a major reason why data center expansion is accelerating across the country and why it's important in Washington, including the Tri-Cities.

The Tri-Cities has several features that may support data center growth. The region provides land, energy resources, research institutions, and a solid foundation in science and technology. Washington State is also actively addressing this issue through research and tax incentives linked to qualifying projects. These factors together help explain why data centers are becoming part of the region’s economic development discussion.

Data centers may provide several business and community benefits, depending on project design and local conditions. Data centers can drive significant construction activity and boost demand for skilled trades, engineering, maintenance, security, and utility services. When well planned, they can also grow the tax base, improve infrastructure, and strengthen the region’s reputation for innovation. Supporters view data centers as part of a broader business and technology ecosystem, while critics argue their economic value should be evaluated against resource demands and public costs.

Still, the risks are real. Data centers consume large amounts of electricity. That means the real question isn't just whether they are good or bad, but whether growth can be managed to protect the public while still gaining the benefits. For the Tri-Cities, future decisions will likely depend on how policymakers, utilities, residents, and businesses weigh potential benefits against associated costs and risks.
​
In Part 2, this series will examine more closely the economic and business benefits that data centers could provide to the region.

• International Energy Agency, Energy and AI and Energy Demand from AI
• U.S. Department of Energy, DOE Releases New Report Evaluating Increase in Electricity Demand from Data Centers
• U.S. Department of Energy, Clean Energy Resources to Meet Data Center Electricity Demand
• U.S. Department of Energy, Cooling Water Efficiency Opportunities for Federal Data Centers
• Washington State Department of Revenue, Tax Incentive Programs and Data Center Workgroup
• Washington State Department of Revenue, Executive Order 25-05 and Data Center Workgroup Adopted Findings
• U.S. Environmental Protection Agency, Water Reuse Case Study: Quincy, Washington
• Bonneville Power Administration, 2025 White Book
• Northwest Power and Conservation Council, Expert panel addresses data center energy efficiency, load flexibility, and water impacts
  

This article was written with contributions from AI to organize the information and improve its readability.

Congratulations to Zerorez Tri-Cities on their ribbon cutting! You can find them at 801 S. Steptoe St., Kennewick, WA 99336

Congratulations to The Hampton Inn Richland for a fantastic ribbon cutting! Go check out their newly renovated guest rooms at 486 Bradley Blvd., Richland, WA 99352

Thanks to everyone who made it out for our State of Higher Education luncheon on June 24th! 

School impact fees can affect whether new housing is developed in Washington. A recent report from the Building Industry Association of Washington examined how school districts utilize these fees and evaluated districts based on enrollment trends, fee levels, and access to capital facilities plans. The main point of the report is that school impact fees should be linked to actual student growth, clear facility needs, and transparent public planning.

School impact fees are levied on new developments to help pay for school facilities needed because of growth. They can support the construction of new school buildings or the addition of classrooms, but cannot cover regular operating expenses like salaries, supplies, or maintenance. This is important because impact fees are separate from general school funding. They are intended to address growth-related capital needs.

The report states that these fees can raise housing costs during a time when Washington already struggles with affordability. For builders, impact fees increase the cost of constructing new homes. For buyers and renters, these costs may be passed on through higher prices. For employers, this is important because housing affordability affects workforce recruitment and retention, as well as employees' ability to live near their jobs.

The report evaluates districts based on enrollment changes, fee amounts, and the availability of a recent, easily accessible Capital Facilities Plan. It expresses concerns that some districts continue to charge impact fees even when enrollment remains steady or declines. According to the report, this raises questions about whether certain fees are truly related to actual growth.

For growing communities, including parts of the Tri-Cities, the challenge is finding a balance. Schools need enough space to support new families, but housing must remain affordable for workers and employers. If fees are too high, unclear, or not tied to actual growth, they can prevent the construction of the housing communities needed.

The report suggests increased transparency, improved tracking, consistent fee calculations, and clearer guidelines for assigning impact fees. The key point for business leaders is that school funding, housing costs, and workforce needs are closely connected. A more effective system should support school capacity while ensuring housing development remains fair, predictable, and affordable.

Access the full report: Making the Grade: Grading school impact fees

Congratulations to Prodigy Homes on the successful ribbon cutting for their model home in Harmony Estates! You can check it out at 8034 W. 12th Ave., Kennewick, WA 99336.