How Quincy, Washington Became Microsoft’s Model Data Center Town

In central Washington, a farming town of about 8,100 people has become a key example in the national debate over data centers, as Microsoft points to Quincy as evidence that the facilities can benefit the communities that host them.

Quincy, in Grant County, has long been known for potato fields, apple orchards and food-processing plants. Microsoft began building data centers there roughly 20 years ago, drawn by inexpensive land, a cool climate suited to cooling equipment, and abundant hydropower from the Columbia River.

As data centers elsewhere have drawn complaints over rising electricity costs, heavy water use and limited job creation, Microsoft has cited Quincy this year as a counterexample, arguing the facilities can deliver real, visible benefits to a host community.

Tax revenue and new amenities

Public radio station KUOW has reported that years of tax revenue tied to the data centers have helped Quincy build a state-of-the-art high school and hospital. The city recently opened a new aquatic center featuring a six-lane lap pool, a lazy river and waterslides, and is now planning a separate indoor sports complex.

Data centers do not generate large numbers of direct jobs on their own — a single facility can run with 50 employees or fewer, according to KUOW. But with several facilities operating in and around Quincy, the industry has become a meaningful employer collectively, while also supporting construction work, local service businesses and the broader municipal tax base.

Addressing water and power concerns

Microsoft has said its new national approach to data centers will ask local utilities to set rates high enough to cover the facilities’ energy use and any required grid upgrades, without raising costs for other residents. The company also says future data centers will use closed-loop cooling systems that recycle water instead of drawing continuously from local supplies.

Quincy already has such a system in place. Microsoft and the city partnered on a $31 million water-reuse utility that treats and recirculates the water used for cooling. The Environmental Protection Agency says the project reduces Microsoft’s reliance on potable groundwater and saves an estimated 138 million gallons of water annually.

A note of caution

Not everyone in Quincy views the arrangement without reservation. Former Mayor Patty Martin has warned, according to KUOW, that the town needs to look past its current economic gains and plan for long-term water and electricity demands, citing population growth, the spread of electric vehicles and a changing regional snowpack as additional pressures on local resources.

Quincy’s experience offers a look at both what data centers can bring to a small town and the questions communities weighing similar projects will need to answer.