Part 2 Data Centers in the Tri-Cities: The Economic and Business Benefits

Part 2 Data Centers in the Tri-Cities: The Economic and Business Benefit

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.
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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

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• ​Washington State Department of Revenue, Data Center Workgroup
• Washington State Department of Revenue, Data centers sales and use tax exemption eligibility
• Washington State Department of Revenue, Sales and use tax exemption for rural data centers expanded
• Washington State Department of Revenue, Tax Revenue & Economic Development Subgroup Adopted Findings
• 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
• International Energy Agency, Energy Demand from AI
• Bonneville Power Administration, 2025 White Book

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