Quincy, Washington Becomes Hub for Data Centers Amid AI Infrastructure Debate

Quincy, Washington, a small farming town of about 8,100 people, has become an unlikely showcase for America's data-center boom. The town, known for its potato fields and apple orchards, began attracting large technology companies two decades ago due to affordable land, a cool climate, and abundant hydropower from the Columbia River.

Microsoft started building data centers in Quincy around 20 years ago and has continued to expand its presence in the area. The company has cited Quincy as an example of how data centers can bring tangible benefits to local communities, countering concerns over electricity prices, water use, and limited job creation.

The economic impact is evident in Quincy, with data-center tax revenue supporting a state-of-the-art high school, hospital, aquatic center, and planned indoor sports complex. While a single facility typically employs fewer than 50 people, the sector has become a significant employer in aggregate, contributing to construction, service businesses, and the city's broader tax base.

Microsoft is now taking steps to address concerns over data-center energy use and grid upgrades. The company will ask local utilities to set rates high enough to cover these costs without raising prices for residents. Future facilities will also utilize closed-loop cooling systems that recycle water rather than drawing from local supplies. Quincy already has such a system in place, with Microsoft partnering on a $31 million water-reuse utility that treats and recirculates cooling water.