Microsoft Takes a Stand Against Washington State's Proposed Data Center Legislation
In a significant development, Microsoft has openly declared its opposition to a proposed bill in Washington State targeting data centers. After remaining on the sidelines for weeks, the software giant has made its position clear, stating it opposes House Bill 2515, which aims to regulate the industry.
Details of the Controversial Bill
The bill reportedly requires utilities and data center companies to create agreements that protect ratepayers from increased power costs and bring transparency to the environmental impacts of these facilities. Washington is currently home to approximately 126 data centers and related facilities, with Microsoft operating roughly 30 of them, making it the largest operator in the state.
According to a report in Geekwire, Microsoft labels the proposed regulations as "uniquely anti-competitive." Lauren McDonald, Microsoft's senior director of Washington state government affairs, has urged Senate leaders to reconsider key features of the bill. In testimony before the Senate Committee on Ways & Means, McDonald said, "We respectfully urge the committee not to advance the bill without significant changes."
Microsoft's Arguments and Concerns
McDonald argued that utilities already have the authority to set rates and avoid rising costs for ratepayers. Specifically requiring new tariffs for data centers would remove flexibility and yield "unintended consequences" in the future. She emphasized that this bill could effectively ban new data centers in the state, posing a threat to technological growth and investment.
In an emailed statement to the Seattle Times, Microsoft expressed agreement with the bill's intentions, stating, "Microsoft agrees with the intention of this bill. We are committed to paying our way for new energy infrastructure, expanding clean electricity generation, replenishing more water than we use, and keeping datacenter communities informed." However, the company added, "But when it comes to the specific language within the bill, the details very much matter."
What House Bill 2515 Entails
House Bill 2515 is said to require public and private utilities to propose a new set of tariffs for data centers, which would effectively translate to higher electricity rates for these facilities. The idea is to ensure data centers pay for any new grid infrastructure they require to meet their massive energy demand and to offset any bill increases the industry's rapid growth might otherwise thrust onto regular ratepayers.
In addition, the measure includes a flat fee of half a penny for every kilowatt-hour of energy used, which data centers would pay toward:
- Low-income bill assistance
- Weatherization projects
- Artificial intelligence education programs
Broader Opposition and Industry Perspectives
Incidentally, the Seattle Metropolitan Chamber of Commerce and the Washington State Building & Construction Trades Council also oppose the legislation. In a recent op-ed last month, leaders of these organizations stated, "HB 2515 is well-intentioned, but it does not address the real challenge Washington faces. The solution is not to slow or penalize critical infrastructure. The solution is to build clean energy faster, modernize the grid, and hold all participants to high standards."
This opposition highlights the broader debate over balancing environmental sustainability, economic growth, and technological advancement in the state's data center industry.
