The project is expected to bring millions in investment to Columbia River town.
The small town of Arlington, a two-hour drive from Portland on Interstate 84, is abuzz as tech giant Amazon prepares to build a data center expected to bring millions in investment.
That’s according to The Oregonian, which quotes the company’s Seattle-based vice president of data centers, who says the site on the hills above Columbia River makes logical sense for expansion due its proximity to Amazon data centers in neighboring Umatilla and Morrow counties. Amazon’s clients prefer data centers to be near each other so information can move between various computers near-instantaneously, says Amazon’s Kevin Miller.
A massive expansion of data center operations represents the biggest economic opportunities in decades for Gilliam County, which is one of Oregon’s least populous. Gilliam’s county administrator tells The O the community is excited for the potential impact. Plans include buying resources to encourage housing development as well as for schools, parks, daycare and city services. To attract new industry, the city and port started preparing the properties for data-center development more than a decade ago.
Last summer, Amazon bought the land from the city of Arlington for $10 million. And it’s in the process of purchasing another 30 acres from the Port of Arlington for $3 million. But it could still be many years before the company is operating in Gilliam County. Amazon plans ahead 13 years when deciding where to build its next data centers. It considers factors like access to power, land and the ability to secure building permits.
Amazon has not provided many project specifics, though a company rep said its Gilliam County operation could be on par with those it operates in Morrow and Umatilla counties. It has yet to secure building permits and electricity, and it plans to pursue further tax breaks. Much will come down to the size of tax breaks it receives. The company already receives nearly $100 million in tax breaks per year. Incentives from the state are expected to save the company more than $1 billion in the years ahead.
Gilliam County is already home to several large wind and solar projects as well as a garbage dump that serves the cities of Portland and Seattle.
Amazon has several clean-energy commitments with the state. It’s under an annual contract with Avangrid to receive power from a Gilliam County wind farm, but it will likely need more to operate in Arlington. The site is currently served by Portland-based PacifiCorp, which is exempt from Oregon’s renewable energy requirements.
The county has retained an attorney and public officials have not yet begun to negotiate with Amazon. And they’ve said they’re taking lessons from Amazon’s dealings with neighboring counties
The growing data center industry is now one of the largest economic sectors in Oregon. It’s grown fast in recent years and currently strains the state’s electric grid. Data centers also use ample amounts of water to cool servers. They don’t, however, require many employees compared to other heavy industries. Several hundred people are employed at data centers in Morrow and Umatilla counties and contractors are also often used.
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