Avista Corp. has confirmed it is in formal negotiations with an unnamed company planning to build a large-scale data center within the utility’s Washington service territory, with the project potentially drawing as much power as half of all current customers in Spokane County. The announcement, tied to a Securities and Exchange Commission filing dated May 29, 2026, adds Avista’s regional footprint to a nationwide wave of utility deals driven by surging demand for artificial intelligence infrastructure — and has already sparked pushback from local officials and residents.
Scale of the Project
Under the terms of the non-binding memorandum of understanding, the data center would begin drawing 125 megawatts of electricity in 2029. The project carries an expansion clause that could push total consumption to 500 megawatts by 2032 — a figure that would represent roughly one-sixth of Avista’s entire peak power output across its full service area, which currently runs approximately 3,000 megawatts at peak demand.
Put another way, a fully built-out version of the facility would consume more electricity than all residential and commercial customers in Spokane County combined currently use. As a single customer, it would account for 16 percent of Avista’s present power load.
Neither the identity of the company proposing the project nor the precise location within Avista’s service territory has been disclosed. Avista spokesman Jared Webley said the company reviewed the MOU more carefully after the filing became public and determined it could confirm the nature of the project, stating: “It does not restrict us from identifying that this potential project is a data center development.” The company’s identity and site location, however, remain shielded under the agreement’s terms.
Local Officials and Residents Push Back
The day Avista publicly confirmed the negotiations, two members of the Spokane City Council voiced concerns. Councilman Paul Dillon and Councilwoman Sarah Dixit both expressed opposition to data center development in the Spokane County area. Dillon framed the issue in terms of resource stewardship, saying “it is more important now than ever to demand responsible use of our natural resources.”
A petition organized on Change.org opposing data center construction in Spokane County had also begun circulating, reflecting community-level anxiety about the infrastructure demands such facilities place on local power grids, water systems, and land use.
Public skepticism toward data centers is not unique to the Spokane region. A Gallup survey found that seven in ten Americans oppose the construction of artificial intelligence data centers in their own communities, with 48 percent saying they are strongly opposed — figures that suggest utility companies pursuing these deals may face sustained pressure from residents regardless of the economic arguments in favor.
A Growing National Pattern
The Avista deal is part of a broader expansion of data center infrastructure across the United States, driven largely by the enormous energy requirements of AI computing. Ohio, for example, now hosts more than 200 data centers — sixth-highest among all states — though that concentration has come with financial complications. Ohio reportedly lost an estimated $1 billion in revenue the prior year attributable to data center activity, a figure that has fueled debates about how localities should weigh the costs and benefits of hosting such facilities.
For North Idaho and Eastern Washington residents who rely on Avista for electricity, the key near-term question is how the utility intends to meet the added demand. A 125-megawatt increase by 2029 represents a significant load addition on a compressed timeline, and any expansion toward 500 megawatts would require substantial generation or transmission additions. Avista has not yet outlined publicly how it plans to source the additional power.
What Comes Next
Because the memorandum of understanding is non-binding, no final agreements have been executed. Avista would need to work through regulatory channels before the project could proceed, and Idaho and Washington utility regulators may weigh in on how added load affects ratepayers across the service territory — which includes portions of Kootenai County and the broader North Idaho Panhandle region.
Residents and officials seeking to engage in the process should monitor filings with the Washington Utilities and Transportation Commission and the Idaho Public Utilities Commission, where any formal rate or infrastructure applications related to this project would ultimately be reviewed. Local government bodies in Spokane County are also expected to continue weighing in as more details become available.