Avista Corp. confirmed Tuesday that it has entered into a non-binding memorandum of understanding with an unnamed company looking to construct a large-scale data center within the utility’s service territory, a development that could eventually reshape power demand across Eastern Washington, North Idaho, and parts of Oregon.
The agreement, which surfaced in an SEC filing dated May 29, outlines a phased power arrangement that would begin with the facility drawing 125 megawatts of electricity as early as 2029. By 2032, that figure is projected to climb to 500 megawatts — a load equivalent to more than half the electricity currently consumed by all residential and commercial customers in Spokane County combined.
To put that in context: Avista generates roughly 3,000 megawatts during peak demand periods across its entire service area. A single data center customer drawing 500 megawatts would represent approximately 16 percent of that total capacity.
Company and Site Identity Remain Undisclosed
Despite the scale of the proposed project, Avista has declined to identify either the prospective customer or the specific location within its Washington service territory. The utility’s spokesman, Jared Webley, indicated that the terms of the agreement prevent disclosure of those details, though the MOU itself does not restrict Avista from describing the project as data center development. The May 29 SEC filing offered no further identification of the company involved.
Avista leadership has addressed concerns about the financial impact on existing customers, stating that any large load customer of this kind would be required to absorb the additional infrastructure and power costs associated with its operations. Company officials have emphasized that existing ratepayers would not be asked to shoulder new burdens tied to the arrangement.
The data center, if constructed and brought online, would represent one of the largest single-customer power commitments in Avista’s history and would arrive during a period of surging national demand for electricity-intensive computing infrastructure tied to artificial intelligence and cloud services.
Local Officials Begin Scrutiny as Public Opposition Emerges
The announcement has already drawn a political response in Spokane. Spokane City Councilman Paul Dillon has indicated plans to introduce an ordinance addressing the proposed facility, and the office of Spokane City Councilwoman Sarah Dixit confirmed the full council is working alongside the city administration to examine the matter.
A petition on Change.org opposing the project in Spokane County has also been launched, reflecting public unease about large-scale data center development in the region.
That unease reflects a broader national trend. A recent Gallup survey found that roughly seven in ten Americans oppose the construction of data centers for artificial intelligence in their local communities, with 48 percent expressing strong opposition. Critics of such facilities frequently cite concerns about energy consumption, water usage for cooling systems, and impacts on local utility rates.
The debate is not new territory. Ohio, which hosts more than 200 data centers — placing it sixth among all states in that category — has faced questions about economic tradeoffs. One independent analysis estimated the state has foregone roughly $1 billion in revenue attributable to data center-related tax and utility arrangements.
For North Idaho residents and businesses served by Avista, the stakes are tangible. The Silver Valley and surrounding communities rely on Avista’s grid for homes, businesses, and industrial operations including active mining. Large-scale additions to regional power demand can influence long-term rate structures and grid reliability, issues that will likely receive close attention as this proposal moves forward. Separately, the region’s economic landscape continues to evolve, with projects like the proposed $270 million stock offering by a Sunshine Mine operator aimed at restarting Silver Valley silver production highlighting the area’s ongoing industrial ambitions.
What Comes Next
The memorandum of understanding between Avista and the unnamed company is non-binding, meaning either party can withdraw before a formal agreement is reached. Avista has not provided a timeline for when the identity of the prospective customer or the proposed site location might be disclosed publicly. Spokane city officials are expected to advance formal discussions in coming weeks, and any permitting, regulatory review, or rate proceedings connected to a project of this scale would likely involve both state utility regulators and local governments across Avista’s service territory. Residents and ratepayers across Eastern Washington and North Idaho can expect this discussion to intensify as more details become available. For additional Idaho economic and energy coverage, visit Idaho News.