Avista makes right call on data center request

In an era when technology is accelerating quickly, it can be tempting to rush toward the next big opportunity. But when it comes to our region’s energy future, caution is a good idea.

Avista’s recent decision to pause processing an energy service request connected to a proposed 500-megawatt data center is the right move. A project of that size would represent one of the largest energy draws in the region’s history, raising questions about infrastructure, environmental impact, long-term costs and who ultimately bears the risk.

Avista understands this.

“We’ve heard the questions and concerns from our customers, community members and local leaders, and we take that feedback seriously,” said Heather Rosentrater, Avista president and CEO. “This input has demonstrated a need for a broader coordinated planning effort, which Avista will actively participate in."

The utility said it is taking additional time to evaluate such large requests while working toward “broader policy and community alignment.” Excellent decision.

Equally important is Avista’s reaffirmation of its guiding principles. Existing customers will not be asked to shoulder the cost of serving a new, energy-intensive customer. System reliability will not be compromised. Any agreement must undergo regulatory scrutiny. Growth must deliver real benefits to the region.

Large data centers, driven in part by the rapid expansion of artificial intelligence and cloud computing, are placing unprecedented demands on power grids nationwide. Communities everywhere are grappling with how to balance economic opportunity against infrastructure constraints and long-term sustainability.

A few pros of data centers: Economic growth and job creation; Infrastructure improvements; technological advancement.

A few cons: Massive energy consumption; High water usage; Environmental impact

While the promise of jobs and economic development is real, so too are the potential costs. Transmission upgrades, generation capacity and rate impacts affect households, small businesses and the regional economy.

As Avista noted, projects of this magnitude require coordination among developers, regulators, infrastructure partners and local communities before any path forward is clear.

Before you say we can't and should not turn our back on AI, we point out that Avista has not closed the door on data center development. Instead, it has made clear that growth must be handled thoughtfully, with safeguards in place and with the interests of existing customers at the forefront. We believe that is the correct course of action.

As conversations continue, stakeholders should stay engaged. The decisions made now will shape the region’s energy landscape for decades to come.

For now, Avista has struck the right balance.