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Data center regulations in Washington

Graded Light and tightening. 8 laws, orders, rulings and local actions, each with its source, reviewed 23 October 2026.

Reviewed 23 October 2026 · Part of the Data Center Rulebook

Tax break trimmed, regulator writing large-load policy, local moratoria spreading

Light↑ TighteningGrid: The West outside California8 items
4in force
3pending
1local pause
narrowedtax break
2.6combined index (5 most)
7.4cper kWh, industrial
23 October 2026reviewed
Regulation2.0 / 5
  1. Grid connection2

    SB 5982 (effective June 11, 2026) binds large customers to clean energy deadlines; Avista paused a 500 MW project June 12, 2026 but no study rule exists.

  2. Power rates1

    No large-load tariff is in force; HB 2515 died in the Senate in March 2026 and the UTC policy statement (UE-260162) is still pending.

  3. Siting and land use3

    Nine temporary moratoria as of August 2026, including Seattle, Spokane and Moses Lake, cover several main markets while Quincy stays open.

  4. Tax treatment3

    SB 6231 (effective July 1, 2026) narrowed the sales tax exemption by excluding replacement servers and refurbished facilities.

  5. Permits and water1

    No water, air or disclosure rule is in force.

Scored on rules in force, 1 to 5. 5 is the most regulated. Pending rules set the arrow.

Washington kept its sales tax exemption for new data centers but, from 1 July 2026, ended it for replacement servers and refurbished facilities (SB 6231). A second 2026 law (SB 5982) confirms that large customers must meet the same clean energy deadlines as utilities. The broader bill to make utilities adopt cost and curtailment tariffs for loads over 20 MW (HB 2515) passed the House and died in the Senate. The Utilities and Transportation Commission is writing a policy statement on large loads at investor-owned utilities, and Seattle, Spokane and at least seven other local governments have passed temporary moratoria.

Outlook for the next year

The UTC said in a 13 October 2026 notice that it expects to publish a draft Policy and Interpretive Statement on large-load customers in docket UE-260162 in early November 2026, take comments through late November, and publish the final statement by the end of 2026. The governor's data center workgroup had not published its final report as of 23 October 2026, and a revived version of HB 2515 is expected in the 2027 session. The nine local moratoria in place as of August 2026 stand, and Avista's talks on a 500 MW Spokane-area data center remain paused.

Does Washington have a data center moratorium in force?

No statewide moratorium, but 1 local pause is in force as of 23 October 2026, in Seattle, Spokane and others. Proposals and expired pauses are not counted.

Is Washington tightening or loosening its rules on data centers?

Tightening. Washington is graded Light, which means incentives in place and few new obligations. Tax break trimmed, regulator writing large-load policy, local moratoria spreading. The outlook above says what is pending.

Which grid operator covers Washington?

Washington sits in The West outside California. The grid operator decides how a new large load is studied, what it must bring or pay, and whether it can be curtailed first; the state decides siting, permits, tariffs and incentives.

Has Washington cut its data center tax incentive?

Yes. Washington has paused, narrowed or ended a data center incentive in 2025 or 2026: SB 6231: sales tax exemption cut back.

How regulated are data centers in Washington?

On Genloop's five-line rubric (1 least regulated, 5 most) Washington scores grid connection 2, power rates 1, siting and land use 3, tax treatment 3, permits and water 1, a mean of 2.0. The most regulated line is tax treatment: SB 6231 (effective July 1, 2026) narrowed the sales tax exemption by excluding replacement servers and refurbished facilities.

Every item, newest first

8 items: each is a law, order, tariff, ruling, utility action or local decision that changes what a data center must do, pay or disclose, or where it may be built. Failed and pending measures are marked. Each links to its source.

  1. RegulatorOct 2026costs and tariffsPending

    UTC large-load proceeding (UE-260162)

    Docket opened 16 March 2026 to set expectations for large-load interconnections, rates and contracts at investor-owned utilities, with workshops on 27 April and 12 August 2026 and written comments from utilities, tech companies, tribes and advocates in August and September. Options discussed include curtailment during shortages, surcharges, longer contracts, upfront payments and exit fees. A 13 October 2026 notice says the commission expects to publish a draft Policy and Interpretive Statement in early November 2026, take comments through late November, and publish the final statement by the end of 2026.

    Source: apiproxy.utc.wa.gov
  2. RegulatorOct 2026costs and tariffsPending

    UTC sets timeline: draft large-load policy statement in early November 2026

    On 13 October 2026 the Utilities and Transportation Commission issued a notice in docket UE-260162 saying it expects to publish a draft Policy and Interpretive Statement on electric large-load customers in early November 2026, request comments by late November, and publish the final statement by the end of 2026, with no further written questions planned.

    Source: apiproxy.utc.wa.gov
  3. LocalSeattle, Spokane and othersAug 2026moratoriaIn force

    Temporary moratoria in nine cities and counties

    As of August 2026 Seattle, Spokane, Renton, Burien, Federal Way, Marysville, Moses Lake, and Skagit and Snohomish counties had passed temporary moratoria on large data centers.

    Source: yakimaherald.com
  4. UtilityAvista (Spokane area)Jun 2026grid connectionIn force

    Avista pauses talks on 500 MW data center

    On 12 June 2026 Avista paused negotiations with an unnamed developer over a 500 MW data center after community objections. Spokane's council first delayed and later passed a moratorium on large data centers.

    Source: spokesman.com
  5. State lawApr 2026incentivesIn force

    SB 6231: sales tax exemption cut back

    ESSB 6231 was signed 1 April 2026 (Chapter 266, Laws of 2026) and took effect 11 June 2026. From 1 July 2026 replacement server equipment and data centers refurbished on or after that date no longer qualify for the sales and use tax exemption, and refurbishment-based exemption certificates expire; new construction and the first installation of servers still qualify.

    Source: leyton.com
  6. State lawMar 2026on-site powerIn force

    SB 5982: clean energy deadlines apply to large customers

    Signed 24 March 2026 (Chapter 181, Laws of 2026), effective 11 June 2026. Clarifies that large customers, including data centers served as market customers of consumer-owned utilities and port districts, must meet the same Clean Energy Transformation Act deadlines as utilities, with the UTC setting reporting rules.

    Source: app.leg.wa.gov
  7. State lawMar 2026costs and tariffsFailed

    HB 2515: large energy use facilities bill

    Would have required utilities serving data centers over 20 MW to file tariffs preventing cost shifts and setting curtailment rules for energy emergencies. It passed the House 51-41 in 2026 and died in the Senate.

    Source: dwt.com
  8. ExecutiveDec 2025costs and tariffsPending

    Governor's data center workgroup (Executive Order 25-05)

    Governor Ferguson's order had the Department of Revenue convene a workgroup of agencies, utilities, labor, environmental groups and industry. Its preliminary report of 1 December 2025 shaped HB 2515 and recommended that state clean energy and carbon laws cover fossil or unspecified power used by data centers; a final report is due later in 2026.

    Source: dwt.com

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