In Central Washington, the small farming town of Quincy is proving significant in Microsoft’s approach to the increasingly contentious issue of data center expansion across America. Known for its rich agricultural background and being home to a leading french fry producer, Quincy has been integral to Microsoft’s data center strategy for approximately two decades.
On Tuesday, Microsoft unveiled new commitments aimed at alleviating the growing concerns surrounding the rapid pace of data center development. Quincy was highlighted as a prime example of how communities can benefit from these large-scale infrastructure projects. Microsoft plans to encourage local utility companies to establish energy rates that reflect the high demands of data centers while ensuring that residents’ costs do not increase. In a bid to enhance sustainability, Microsoft intends to implement a closed-loop water cooling system in new data centers, thereby reducing reliance on local water supplies.
Additionally, Microsoft has committed to rejecting tax incentives or subsidies from local governments, emphasizing its willingness to contribute positively to the local tax base, which supports essential services such as schools and hospitals. During the announcement in Washington, D.C., Microsoft President Brad Smith pointed out, “We will add to the tax base that funds your local hospitals, your schools, your parks, your libraries … and I think no place better illustrates this than the small town where Microsoft built its first data center.”
This initiative comes amidst widespread criticism of data centers, particularly in rural areas, where opponents argue that these facilities consume excessive resources while creating minimal permanent jobs. However, the situation in Quincy is somewhat different. Access to hydropower from the Columbia River helps mitigate some concerns around resource depletion. Although individual data centers employ fewer than 50 people, the cumulative impact of several facilities has turned into a substantial job creation engine for the community. Over time, taxpayers have visibly benefitted from investments into local infrastructure, resulting in improvements such as a modern high school and hospital.
Despite these advantages, not all residents are on board with the expansion. Former Mayor Patty Martin has consistently voiced apprehensions about the long-term consequences of hosting several data centers. She cautioned against a short-term focus on economic benefits without considering the future implications. In an interview last year, she remarked, “It’s great to look at the economic benefits… The question is, what’s a long-term effect? What about 10 years, 20 years from now, and these facilities are still here?… I just think that sometimes we’re a little bit too shortsighted.”
While Quincy’s experience with data centers showcases potential benefits, it also serves as a reminder of the complexities surrounding such developments. As the conversation continues, Microsoft’s commitments could foster a more harmonious relationship between technology expansion and community welfare, creating a model for future projects across the country.