Can Washington Win the Data Center Competition

Massive, gigantic data centers are popping up in various states around the country and where they show up has a lot to do with companies negotiating special tax incentives Including property taxes and the availability of electricity. Data centers use a huge amount of electricity. 

Now add to that the new AI data centers. 

Based on the articles I've read, AI data centers are even more power hungry. Some states would really like to see these data centers come home to them increasing their prestige, their tax base, and the construction jobs that go with it. 

There are several states that seem to be uniquely positioned to have an advantage in luring these AI data centers to Build in their states. 

Let's look at a few of them. 

The states I'm going to list for you don't necessarily appear in any particular order, although I have my own favorite. 

According to msn.com,
‘"Data centers run 24/7, and need to be able to support the needs of our users," said Rachel Peterson, vice president of data centers for Meta. The parent of Facebook, Instagram and WhatsApp has announced a massive push into AI. "We use a lot of power. We need to make sure we have a robust grid," she said. Meta is not alone, say economic development experts.’ 

New Mexico. 

New Mexico is making plans to enlarge and strengthen their grid. They are the 7th largest producer of wind energy, and they are also increasing their use of solar energy. 

Average retail price of electricity (all sectors): 9.30¢/kWh
Power from renewable sources: 59.6% 

North Dakota. 

North Dakota brags about having the cheapest electricity in any state. They have lots of coal and natural gas and a smaller population. Also, a respectable percentage of their power is supplied by renewables like wind and solar, and they're working to improve that percentage. 

Average retail price of electricity (all sectors): 8.00¢/kWh
Power from renewable sources: 34.7% 

South Dakota. 

According to the Energy Department, South Dakota has the most reliable energy grid in the country. They also have a very respectable 63% of their power provided by renewables. Add to that they have one of the lowest numbers of power outages.  

Average retail price of electricity (all sectors): 11¢/kWh
Power from renewable sources: 62.5% 

Iowa.

Coal, which was a dominant power source for Iowa up until about 2019 now represents less than 25% of their total power production. No state in the union gets more electricity from wind power than Iowa. 

Average retail price of electricity (all sectors): 9.43¢/kWh
Power from renewable sources: 65.6% 

Washington.
I admit I'm biased not just because I live in Washington, but because I live in Eastern Washington. When you look at these other states, they talk about the average price of electricity in the state. But when you look at Washington state, you really need to look at Eastern Washington, because where I live In Chelan County we have the second cheapest electricity in the entire United States and in Douglas County, which is just across the river, it is the least expensive electricity in US. 

Admittedly, our power grid has some issues, especially in Western Washington but when you look at the average price of electricity in Washington state, keep in mind that in Eastern Washington, it's less than half that amount.

There's also a significant investment in nuclear power and soon fusion power. You only have to drive through Ellensburg or the Tri-Cities to see the windmills. I couldn't seem to find a consensus on the amount of utility grade solar power being generated. 

Average retail price of electricity (all sectors): 10.16¢/kWh (2024)
Power from renewable sources: 10.2%  

(Since this last number is woefully inaccurate, it's safe to assume that some of the other statistics that we get from MSN.COM might also be a little off)
This list just covers a few of the states that would be key players in hosting AI data centers. 
These 10 U.S. states are best positioned with electricity to power AI data center boom 
DOE Releases New Report Evaluating Increase in Electricity Demand from Data Centers | Department of Energy 
Top States for Business in America 2025: The full rankings 
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