Moratorium creates 365-day ban while resolution call for impact studies on infrastructure, economy, and public health

SEATTLE – Today Councilmember Debora Juarez (District 5), Councilmember Eddie Lin (District 2), and Council President Joy Hollingsworth (District 3) announced plans to introduce an emergency moratorium on the siting of new data centers in Seattle. The bill will be paired with a resolution calling for impact studies of data centers on city infrastructure, water usage, utility rates, land use, jobs and public health. Data centers around the country have come under increased scrutiny recently as their high energy consumption and environmental impacts have led to rising electricity rates for consumers, sparking a significant public outcry.    

“Mega data centers are popping up across the country, driving up utility costs for residents and small businesses and increasing air, water and noise pollution when not properly regulated,” said Councilmember Lin, prime sponsor of the moratorium legislation. “Thousands of Seattleites have made their voices heard — we should not be subsidizing the massive and record profits of tech corporations pursuing large AI data centers in our city. South Seattle already suffers disproportionately from higher levels of pollution as well as heat islands. We need to hit pause on data centers, engage with neighboring jurisdictions, and develop regulations that prohibit mega data centers unless they can be done in economically and environmentally sustainable ways that benefit all of us.”

“It is essential to put necessary safeguards in place for our communities, our infrastructure, and our environment from the impacts of large-scale data centers,” said Council President Hollingsworth, co-sponsor of the moratorium. “Data centers can bring both negatives and positives to a city — ultimately, we need to learn more about the second-hand effects of these facilities, including utility rates. My colleagues and I look forward to working with the Executive on a solution that is sustainable for Seattleites, our public utilities, and our economy.”

“Water, land, and air are life-giving resources not to be moved around on a balance sheet,” said Councilmember Juarez, prime sponsor of the resolution. “Extraction culture speaks about these resources in the language of accounting rather than finite, precious resources for all people, prioritizing short-term gain over the well-being of all. These proposed centers raise serious ethical questions if they proceed without safeguards or policies to protect our resources. As elected leaders, we have a responsibility to join with residents and thoroughly examine the long-term impact of these decisions.”

Background

Demand for data centers (facilities housing computer systems) has increased nationally as artificial intelligence (AI) and other technology industries grow. The International Energy Agency (IEA) reports that the electricity consumption of data centers is estimated at 415 terawatt hours (TWh) — about 1.5 percent of global electricity consumption in 2024, and has grown 12 percent per year in the last five years.

There are about 30 small data centers located across the city. However, given rapidly increasing demand for computing power from the growing AI sector, companies are looking nationwide to site mega data centers.  

The City Council received thousands of emails after reports that four companies have approached Seattle City Light about building five large-scale data centers in the Seattle area. These data centers would have a combined maximum demand of 369 megawatts, enough to power approximately 300,000 homes. The five proposed large-scale data centers would be the first of their size in the area.

What the legislation does

The draft resolution defines data centers as facilities consisting of housing and infrastructure (heating, cooling, lighting, offices) to support servers (computers), data storage systems, networking equipment, uninterruptible power supply batteries, or backup power generators. It requests reports on the potential impact of data centers on electrical grid capacity and reliability, water usage, environmental sustainability, utility rates, land use and development, jobs and the economy, public health, and community well-being.

The resolution also calls for the cooperation of the Mayor’s Office across City departments in the timely development of policies to guide future legislation, budget appropriations, and departmental actions. The goal is to potentially reduce or mitigate any deleterious effects and enhance beneficial impacts of data center development and operation in Seattle.

The proposed moratorium on data centers would take effect immediately upon adoption by the City Council. The ban would be in effect for 365 days, unless extended by City Council, for an additional six months. A public hearing is required within 60 days of adoption as part of the process.

What’s next

A final version of the draft resolution should be available for the public to review next week. Both the resolution and the draft moratorium legislation will be introduced by mid-May. Following potential votes on the resolution and moratorium, councilmembers are expected to consider and take action on an ordinance codifying the 2027 and 2028 rates for City Light customers. This legislation will establish a separate rate for new high electricity consumers, or large load customers, including data centers

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