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Pasco city council members unanimously approved a six-month pause on new data centers, temporarily halting the issuance of permits and licenses while the city decides how it wants to regulate this industry.
During that time, city staff will also study cryptocurrency mining, blockchain computing and artificial intelligence computing facilities, which could seek permits to operate in Pasco in the future.
Council members said they wanted time to better understand the industry’s rapid growth before allowing new projects to move forward.
Council member Abel Campos clarified Monday that Pasco has not received any applications from companies seeking to build or operate data centers in the city.
According to the U.S. Department of Energy, data centers used about 4.4% of the nation’s electricity in 2023. That figure is expected to increase to between 6.7% and 12% by 2028.
Under current city code, data centers are allowed in I-2 and I-3 industrial zones, city staff deputy director Craig Raymong told the council.
With the moratorium now approved, the next step is for city staff to develop and present new land-use regulations for data centers within the next six months.
Council member Leo Perales also suggested that Pasco consult with officials from communities where data centers are already operating, including Umatilla, Hermiston and Boardman, before adopting new rules.
Council member Joe Cotta said he does not believe data centers would be a problem as long as the city has a plan to provide the infrastructure and resources those facilities require.
“How do we expect to be able to supply the power and water that’s needed for these data centers when the state Legislature is imposing so many restrictions on gas and power?” he said.
Cotta added the city needs to understand how to address potential environmental and radiation concerns related to data centers to ensure nearby residents are not affected.
Why is Pasco acting now?
Although no data centers are currently proposed in Pasco, several projects are moving forward elsewhere in the Tri-Cities region, and city leaders say they want to establish policies before developers begin submitting applications.
Pasco also has large areas of industrial land and has proposed a Targeted Urban Area to attract future business and industrial growth, making the city a potential location for future data center development.
Across the region, several major projects are already operating.
Pacific Northwest National Laboratory in Richland is considering building a small data center that could begin operating as early as 2028.
The data center’s goal is to support researchers using artificial intelligence to advance scientific research.
Atlas Agro, which plans to build a low-carbon fertilizer plant in north Richland, has also proposed a $500 million data center as part of its project.
In West Richland, global real estate firm Trammell Crow Company has confirmed it is evaluating a site for a future data center within the Lewis & Clark Ranch development, although few details have been released.
Meanwhile, Amazon Web Services plans to invest $5 billion to build a campus of 16 data centers at Wallula Gap Business Park to support its artificial intelligence operations.
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