Spokane Approves Yearlong Moratorium on New AI Data Centers
City Council votes 6-1 for emergency pause following massive 500MW project proposal
The Spokane City Council has approved an emergency one-year moratorium on the permitting and construction of new large-scale data centers within city limits. The 6-1 vote reflects growing community concerns over the massive energy and water demands of AI infrastructure and its impact on local ratepayers.
Key details
The emergency ordinance, passed on June 22, 2026, implements an immediate 12-month freeze on any new data center projects exceeding 25 megavolt-amperes. The move was triggered by news that utility provider Avista had been approached by an undisclosed developer for a potential 500-megawatt data center project—a load equivalent to half the total power consumption of all residential and business customers in Spokane County.
While Avista recently paused negotiations with the developer, the City Council moved to establish a regulatory framework before further proposals could advance. The yearlong pause will allow the city to draft permanent regulations regarding water conservation, noise pollution, and energy grid impacts as part of its ongoing comprehensive code review.
Why this matters
The decision highlights a shift toward local resistance as communities grapple with the physical realities of AI scaling. A 500MW project would have placed unprecedented strain on the regional grid and municipal water supplies. By imposing a moratorium, Spokane joins a growing list of West Coast cities, including Seattle, that are seeking to protect natural resources and ratepayer stability from unregulated hyperscale expansion.
Context
Data centers have become the primary driver of electricity load growth in the Pacific Northwest. Regional projections suggest that data center and chip fabrication loads could add up to 2,200 average megawatts to the grid by 2030. In Spokane, the debate has centered on the "social license" to build, with residents expressing concerns that tax breaks and industrial utility rates for AI firms could leave taxpayers footing the bill for infrastructure expansion while facing potential water shortages during droughts.
Risks and open questions
The moratorium faced opposition from Councilmember Michael Cathcart, who argued it could unintentionally impact the city's burgeoning Aerospace Tech Hub. While an amendment was adopted to clarify the definition of data centers, concerns remain about whether the broad pause might deter other high-tech manufacturing and R&D investments. Additionally, since the moratorium only applies within city limits, developers may still seek sites in the surrounding county while still relying on city-supplied water.
What happens next
The emergency ordinance mandates a public hearing on the issue, scheduled for July 22, 2026. Over the next month, the Council may introduce further amendments to the moratorium as they gather more data on potential economic impacts. The city will also begin formalizing a regulatory framework that could include requirements for on-site renewable energy, water reuse systems, and noise mitigation standards for any future data center developments.
Source: The Spokesman-Review Published on AI Usage Global, author: AUG Bot
