A massive new data center campus is on the horizon for Southwest Washington, with plans underway in Walla Walla County. The Port of Walla Walla has approved the sale of 500 acres to Advance Phase LLC, which intends to invest $5 billion in developing the cutting-edge facility. This article explores the significant impact this project could have on the future of data center development, while delving into the potential benefits and challenges it presents.
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Walla Walla Data Center: A Paradigm Shift in Data Center Development
According to reports from the Tri-City Herald and Elkhorn Media Group in October 2024, the Port of Walla Walla commission unanimously approved the $32.5 million strategic sale of 500 acres at its Wallula Gap Business Park to a U.S. tech giant operating under the alias "Advance Phase LLC" for the development of a data center. Advance Phase LLC is likely a shell company for one of the large hyperscale data center developers. The Port of Walla Walla is aware of the company's true identity operating under the alias, but is restricted from disclosing it due to a nondisclosure agreement. Officials explained that such agreements are a standard practice designed to protect expansion and investment strategies from competitors.
Advance Phase LLC plans to develop 16 data centers on the 500-acre property in four stages spanning 3.4 million square feet near Highway 12 in Wallula Gap. The Wallula Gap Business Park spans 1,900 acres of prime heavy industrial land, strategically located next to US Highway 12 and the Union Pacific Railroad mainline, with convenient access just 10 miles from Interstate 395. The site will neighbor prominent companies such as Packaging Corporation of America, Tyson, and the upcoming Rockwool insulation plant.
Benefits of the Walla Walla County Data Center
This groundbreaking endeavor marks a significant milestone in the region's economic growth and technological advancement. The data center facility in Walla Walla county will create jobs, advance the region's digital infrastructure, and generate significant tax revenue.
1) Job Creation
The Walla Walla Data Center campus will generate significant employment opportunities for the local community. The data center campus is expected to create at least 380 direct jobs while supporting an additional 400 indirect positions, according to the Port of Walla Walla. The number of data center-related jobs nationwide grew by an impressive 20%, rising from 2.9 million in 2017 to 3.5 million in 2021. This growth significantly outpaced the overall U.S. employment increase of just 2% during the same period, according to accounting firm PwC.
2) Strengthen Digital Infrastructure
The Walla Walla Data Center campus is set to drive both economic growth and digital innovation in the region. This $5 billion, state-of-the-art facility will not only create a wealth of job opportunities, it will offer businesses secure, scalable data storage, advanced cloud computing solutions, and dependable connectivity.
Data centers play a pivotal role in strengthening local infrastructure by driving the need for reliable and consistent access to essential resources such as roads, water, electricity, and fiber optic networks. Developers often invest in upgrading and reinforcing these critical systems to support their operations. These enhancements not only meet the demands of the data centers but also create a ripple effect, improving infrastructure for the entire community and attracting additional investments.
3) Increase Tax Revenue
The Port of Walla Walla anticipates nearly a 50% increase in its total tax base thanks to the proposed data center development. If completed, the project would become a significant taxpayer, contributing substantial revenue to county government, schools, and various public agencies. Port Commissioner Ron Dunning highlighted that this increase of tax revenue could potentially reduce tax rates for local businesses, farms, and homeowners.
Challenges Facing the Walla Walla County Data Center
Walla Walla County residents expressed surprise at the consideration of such a significant project, raising a range of concerns. They questioned the company's identity, its plans for powering the complex, its source of water, and whether the site might be used as a cryptocurrency mine, among other issues regarding the potential impact of the development on their community.
Water supply remains one of the primary concerns surrounding the Walla Walla Data Center campus development. The site's dry climate and reliance on local water resources could pose significant challenges for developers looking to build a massive data center facility that requires high amounts of water for cooling purposes. Advance Phase must secure a reliable supply of industrial water to sustain its operations, along with the enormous energy required to power its extensive computer network.
A specific concern regarding the water supply needed for the data center involves its proximity to the Umatilla Indian Reservation and its potential impact on the sacred area where the Snake River and other waterways meet with Columbia River. Residents of Walla Walla County urged the commission to seek input from the Confederated Tribes of the Umatilla Indian Reservation regarding this concern.
Additionally, data centers are notorious for their high power usage, and this new facility in Walla Walla County is expected to consume a significant amount of energy. A possible solution to this issue is to incorporate renewable energy sources to power data centers. Many data centers across the country are already incorporating clean energy resources to meet their energy needs, with companies like Google and Microsoft leading the charge.
Residents of Walla Walla County have also voiced concerns about potential noise, light pollution, and environmental impacts stemming from the construction of the site. The project will undergo a thorough permitting and review process by Walla Walla County and is expected to be evaluated under the Washington State Environmental Policy Act.
Addressing these challenges will be crucial for the successful development of the Walla Walla County data center and data centers across the nation. With proper planning and consideration for community feedback, data centers can become a valuable asset for economic growth and technological advancement.
Leveraging Agency-Owned Property for Data Centers
By selling county-owned property for the data center campus, Walla Walla County will generate significant tax revenue, strengthen its digital infrastructure, and create jobs. Other areas of the United States where data center development is booming are already experiencing these benefits. For example, tax revenue in Loudoun County, VA has doubled as a direct result of data center development, along with the creation of over 12,000 jobs within the county.
This trend of selling county-owned land for data center development is not unique to Walla Walla County. Across the nation, government agencies are leveraging their property assets to attract data center developers and reap benefits from these projects.
LandGate helps government agencies analyze the suitability of their properties for data centers and renewable energy projects at no cost. Government agencies can also advertise available properties for sale or for lease on LandGate's platform directly to a nationwide network of data center and clean energy developers actively seeking suitable sites. If your agency owns underutilized property and are curious if it could be well-suited for a data center or renewable energy project, schedule a free consultation call with our team today:
