CEO’s Message – May 2026

Data Centers, Our Community, and Columbia REA

Whether in favor, opposed, or indifferent, the reality of a large, power-intensive, data center being built in our area was bound to happen sooner or later. As you may have read recently in the Union-Bulletin and other reports, that reality has reached Columbia REA. In late 2024, the Port of Walla Walla announced the pending sale of land in the Wallula area for the development of a large, industrial data center campus. The site is located within a Port-developed industrial park intended for large scale facilities. Columbia REA did not recruit the project or make the decision for it to locate here; our role is limited to whether and how electric service is provided.

Across the country, data centers are multiplying rapidly as demand for cloud storage, computing and artificial intelligence grows. There are more than 5,000 data centers in the United States, representing about 45 percent of global data storage capacity. Today, they account for roughly five percent of U.S. electricity use, and national projections show that figure could double—or more—by the end of the decade. This growth is reshaping how utilities plan for power supply, infrastructure, and reliability.

For Columbia REA, the Board’s top priority has been to protect existing members. After more than a year of study, consultation, and discussion, the Columbia REA Board of Directors unanimously agreed to move forward under strict conditions. The data center will be served under a separate, cost-based rate class, and all costs associated with serving it will be tracked independently. The intent is clear: existing members should not subsidize the project or bear added financial risk.

All new infrastructure required to serve the data center, including substations, transmission lines, system upgrades, and engineering and legal costs, will be paid for by the developer. These investments also have the potential to strengthen our overall system. Experience from other rural cooperatives shows that high reliability facilities like data centers often fund upgrades that improve reliability for all members, spread fixed costs more efficiently, and increase resources available for outage response. In other words, existing members can benefit in a multitude of ways because of these large loads.

I’m sure many of you are wondering how this may affect membership and capital credits. Under Columbia REA’s bylaws, the data center will be a member with one vote, the same as any other member. Capital credits will be handled consistent with cooperative policies, and the Board is reviewing how large-load members should be treated in the future. At this time, no changes to the calculation and distribution of existing members’ capital credits are expected, and Columbia REA’s cooperative status remains unchanged.

As the electric industry continues to face rising costs, long equipment lead times,
and unprecedented demand, Columbia REA remains focused on its mission: to serve
members first, protect your interests, and ensure safety and long-term reliability for the
communities we serve.

Best,
Scott Peters,
CEO