Secondary Market: Central Washington

Colocation Insights

• Renewable green hydropower is an important draw for data center operators. The Central Washington market has some of North America’s lowest power rates, at $0.028-$0.035 per kW.
• In Quincy, data center operators have had to “get in line” due to significant current power delivery demand and limited availability. The PUD’s current infrastructure enhancements are expected to dramatically increase power availability.

Market Trends

• This rural market has limited colocation options because it is dominated by hyperscalers and single-tenant data centers. But there are a few opportunities for smaller requirements.
• Many projects are 100% pre-leased before completion.

Notable Activity

• Washington State renewed and expanded its tax abatement program for renovation or construction of qualifying data centers of at least 100,000 sq. ft. The tax benefits extend to tenants of qualifying data centers.
• The hyperscaler that purchased development sites in Wenatchee and East Wenatchee, to augment its Quincy location, is expanding its local data center portfolio to include leases.
• Sabey delivered 6 MW for its first tenant at SDC Quincy's Building E, which has approximately 323,000 sq. ft. of data center space. When fully occupied, the building will deliver up to 48 MW. Sabey Data Centers Quincy’s Building D is 100% pre-leased and under construction.
• Vantage Data Centers’ Quincy campus saw the completion of the second building, WA-12, which is pre-leased to a single tenant. It commenced construction on its third building, WA-13.
• Grant County’s public utility district purchased land in Quincy for a planned switchyard. It is actively planning three new 230 kVA transmission lines, to greatly expand existing hydroelectric dam power service.

Figure 1: New Market Development Information

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 2: New Market Inventory and Vacancy

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 3: % of Total Secondary Market Inventory

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 4: Market Fuel Mix

Source: Washington State Department of Commerce.

Figure 5: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.