A report from a global commercial real estate brokerage shows Central Washington with explosive growth in the wholesale secondary data center market, with less vacancy despite increased inventory. 

More than 84 megawatts of data center capacity came online in the region over the past year, boosting the total to nearly 250 megawatts, according to CBRE Inc. Despite that increased inventory, less than half a megawatt remains unused, indicating high demand. 

In the data center market, rents are calculated by the amount of power – in kilowatts or megawatts – the renter will be assured rather than the provision of physical space. Data centers require vast amounts of energy to operate, particularly as artificial intelligence (AI) is integrated into more tech platforms. 

Access to relatively inexpensive hydroelectric power generated on the Columbia River is a big selling point for Central Washington, as is the state’s encouragement of siting data centers with tax incentives and the nearby tech industry. 

“Sites that can offer power within the next 18 to 24 months are highly sought after. Power delivery to many sites takes much longer,” according to the CBRE report. “While location remains an important factor, it has become less critical in site selection. Tertiary and rural markets have seen unprecedented deal activity for powered land.” 

The Tri-Cities is seeing its share of data center interest. Earlier this year the city of West Richland, at the request of a large property owner, updated its zoning to allow the construction of data centers in specific areas. 

A yet-unidentified American company has begun discussions with the Port of Walla Walla to potentially buy 500 acres of port land near Wallula to establish a data center campus that could create hundreds of jobs and inject $5 billion into the region’s economy.