Central Washington

Colocation Insights

• Limited multi-tenant colocation options exist.
• Hyperscaler-owned and single-tenant leased facilities are the primary drivers of data center development in Central Washington.
• State tax incentives for data centers in rural areas continue to fuel demand.

Market Trends

• Prolonged delays in public utility district (PUD) transmission line projects are prompting developers and local districts to actively pursue private power system development for faster delivery.
• New substations are primarily funded by developers and end-users, not public utilities.
• Alternative power solutions are being actively developed, including combined cycle gas turbines (CCGT), solar, battery storage, wind and biofuels.
• Microgrids powered by these new technologies serve as both backup and interim power solutions while awaiting PUD grid upgrades.
• Clean-air and quiet generators fueled by natural gas or propane offer rapid, albeit more expensive, interim power solutions pending the arrival of alternative power sources and PUD grid enhancements.

Notable Activity

• A solar power development is underway north of Quincy.
• Sabey continues to expand its Quincy and East Wenatchee campuses with high-powered data center projects.
• Major operators, including Sabey, are adding energy experts to their development teams to secure alternative power sources.
• A hyperscaler is planning a $4.8 billion, four-phase campus in the Tri-Cities area, comprising 16 data centers totaling 215,000 sq. ft. each.

Figure 1: Historical Market Information

Figure 2: New Market Inventory and Vacancy

Figure 3: % of Total Secondary Market Inventory

Figure 4: Market Fuel Mix

Figure 5: Average Asking Rates