Data Centers Can Catalyze the Clean Energy Transition
In the last decade, data centers have quietly become one of the largest consumers of electricity in Washington State. With companies like Microsoft, Amazon, and Google expanding their cloud infrastructure in places like Quincy and Moses Lake, our region has become a hub for digital storage and artificial intelligence computing. But as these facilities scale up, so does their energy consumption—creating both a challenge and a golden opportunity for renewable energy adoption.
Washington's Data Center Growth: By the Numbers
The U.S. National Renewable Energy Laboratory (NREL) estimates that an additional 2-4 MW of renewable generation is needed for every MW of data center capacity added to meet sustainability goals. That is a significant amount of energy given that just in 2023, Washington added a total solar energy capacity of 882 gigawatt-hours.
Additionally:
Washington ranks among the top 10 states in data center growth, with major cloud service providers expanding their infrastructure here due to low-cost hydroelectric power and a favorable climate that reduces cooling costs.
According to the U.S. Department of Energy, data centers currently account for about 2% of total U.S. electricity consumption—a figure projected to double by 2030 due to AI, machine learning, and the explosion of digital storage.
In Washington alone, data centers already consume an estimated 2,000 megawatts (MW) of electricity annually—equivalent to the energy needs of more than 1.5 million homes.
Renewable Energy: The Only Path to Sustainable Growth
The rapid rise of data centers presents an urgent need for clean energy solutions. While Washington benefits from abundant hydroelectric power, our grid still relies on fossil fuels, particularly during peak demand periods. The expansion of data centers means we must invest even more aggressively in solar, wind, and battery storage to maintain Washington’s leadership in clean energy.
Why Solar & Storage Are Key to the Solution
Grid Stability & Peak Demand Management:
Data centers require 24/7 uptime, which pulls energy even during peak hours when electricity demand is highest. This is where solar-plus-storage systems come into play—storing excess solar power during the day and deploying it when needed to match peak demand.
New Investment Opportunities:
As utilities like Puget Sound Energy (PSE) and Avista scale up their clean energy portfolios, corporate buyers—including data center operators—are increasingly seeking direct investments in renewable projects to meet sustainability commitments. This means greater demand for local solar and battery projects, opening up new opportunities for developers, installers, and clean energy advocates.
Energy Independence & Decarbonization:
Expanding Washington’s renewable capacity ensures that data centers don’t force us into greater reliance on fossil fuels. Instead, they can serve as catalysts for the state’s clean energy transition, pushing for policies that accelerate the deployment of wind, solar, and storage infrastructure.
A Catalyst for Change: Policy & Industry Collaboration
The explosive growth of AI and cloud computing demands a serious policy response that prioritizes renewable energy and grid modernization. Here’s how Washington can lead:
Mandate 100% Clean Power for New Data Centers:
As Oregon recently did, Washington can pass legislation requiring all new data centers to be powered by 100% renewable energy by 2030.
Expand Virtual Power Plant (VPP) Programs:
SolarEdge and Tesla’s Flex Battery Program with PSE is a perfect model—data centers should be incentivized to install battery storage and participate in grid-balancing programs.
Utility-Scale Solar & Wind Development:
Expediting clean energy projects through streamlined permitting and tax incentives ensures we keep up with demand.
Incentivize Onsite Solar & Microgrids:
Data centers should be encouraged to install onsite solar paired with battery storage to reduce reliance on external power sources.
Washington’s Clean Energy Future Starts Now
Washington has a historic opportunity to leverage the data center boom to fast-track the clean energy transition. With the right policies and investments in place, we can ensure that every additional megawatt of demand from AI and cloud computing is met with 100% clean power—not fossil fuels.
The future of tech and sustainability is deeply intertwined. If Washington rises to the challenge, our state can set a national precedent for how to power the digital age sustainably.
