As visitors approach Quincy, Washington, they are greeted by dry, rolling hills intersected by the majestic Columbia River. The first sign they encounter proudly proclaims Quincy as the nation's leading potato-producing county. However, in recent years, Quincy has transformed into a hub for something far more lucrative: expansive data centers that fuel the modern internet and support the booming artificial intelligence industry. These data centers are essential for powering everything from applications like ChatGPT to maintaining online medical records.
The increasing demand for internet-connected devices and AI applications has sparked a nationwide surge in data center construction. This data center boom is not just a technological phenomenon; it also presents the promise of revitalizing small towns like Quincy, offering new industrial anchors that can create jobs, generate tax revenue, and foster economic prosperity in areas often left behind by the digital revolution.
However, this growth comes with significant costs. Data centers have substantial power and water demands, which can strain the resources of small communities. Moreover, they typically employ fewer people compared to traditional manufacturing industries. As towns across the country contemplate the implications of becoming a data center hub, the balance of benefits and drawbacks varies based on each community's unique resources and character.
Quincy, with a population of approximately 7,500 and a majority Hispanic agricultural community, serves as a case study in the effects of the data center industry. Since the establishment of the first data centers in Quincy, the percentage of residents living below the poverty line has significantly decreased from 29.4% in 2012 to 13.1% in 2023, according to census data. Local resident Lisa Karstetter notes that Quincy used to be a town where young people left in search of better opportunities. However, the arrival of major tech companies like Microsoft and Yahoo has changed that narrative.
Karstetter, who managed community relations for Yahoo and later for Microsoft, emphasizes the positive economic impact of the data center industry. The synergy between agriculture and data centers has brought much-needed tax revenue to the farming community. "For the first time in my history of living in Quincy, we had a full police force because they could afford it," she recalls, highlighting the improvements in community services, including a new fire station and library.
According to Alex Ybarra, a Republican state legislator from Quincy, data centers contribute approximately 75% of the town's property tax revenue, which has funded various public amenities. One notable addition is the Quincy Valley Medical Center, which opened in May and offers a range of services, including emergency care and physical therapy. Local resident Julie Pickering praised the new facility for significantly improving access to healthcare in the community.
In addition to healthcare, education has benefitted from the data center boom. Quincy High School recently underwent renovations funded largely by property taxes from data centers, with a bond amounting to $108 million. The school now boasts modern facilities, including a new auditorium and career training programs that expose students to potential careers in data center operations.
While data centers have created numerous construction jobs, the long-term employment landscape remains uncertain. The U.S. Chamber of Commerce estimates that a large data center typically employs around 150 people permanently. Microsoft has not disclosed specific employment figures for its Quincy's operations, but they indicate that each of their 21 data center buildings can employ 40-50 people.
Ryan Beebout, vice president of Sabey Data Centers, mentions that their Quincy campus employs around 250 workers, which is significant for a small town. Entry-level data center technicians earn approximately $60,000 annually, nearly double the median income for Quincy residents, which highlights the economic potential that these facilities bring.
Despite the economic benefits, some community members express concerns about the environmental impact of data centers. Patty Martin, a former mayor of Quincy and an environmental activist, argues that the economic gains may not outweigh the long-term environmental costs. She and her advocacy partner, Danna Dal Porto, have raised alarms about the water and energy demands of data centers and how they could conflict with Washington state's climate goals.
Martin emphasizes the need for long-term sustainability, arguing that the current reliance on the Columbia River's hydropower could be jeopardized by climate change, which affects snowpack levels. In Grant County, where Quincy is located, resource constraints have begun to emerge, with the local utility facing numerous pending applications for new data center projects that could double the demand for power.
As Quincy navigates the challenges posed by the data center boom, it is not alone. Across the nation, other regions are grappling with similar issues, from power demands in Northern Virginia to water shortages in drought-stricken areas. In response to these demands, companies like Microsoft are investing in closed-loop water recycling and exploring alternative energy sources, including nuclear fusion and renewable energy technologies.
In conclusion, the story of Quincy, Washington, illustrates the complex interplay between opportunity and challenge in the age of data centers. While the economic benefits are undeniable, the long-term sustainability of such growth remains to be seen, making it crucial for communities to carefully weigh their decisions as they embark on their journey into the digital future.
