Data Center Workgroup: Preliminary Report by Washington State, Department of Revenue

Washington’s 2025 Data Center Workgroup preliminary report finds that rapid data center growth is significantly increasing electricity demand and raising concerns about grid reliability, ratepayer cost shifting, and alignment with the state’s climate goals. The group also questions whether existing tax exemptions deliver sufficient economic return given relatively low permanent job creation. While no final recommendations are made, the report highlights major policy tensions around incentives, transparency, and who ultimately bears the costs of expansion.