Chelan PUD, Microsoft a Step Closer to Finalizing Data Center

Chelan County PUD commissioners are expected to OK an interconnection agreement with Microsoft at their next meeting on June 20.

The agreement will include details about Microsoft's payment schedule for electricity and infrastructure at its planned data center along the Malaga-Alcoa Highway.

PUD attorney Robb Davis says the tech giant will be required to foot the bill for changes and upgrades needed to operate the data center.

"The interconnection customer is required to pay for and construct the facilities that they own," said Davis. "They're required to pay for the interconnection facilities that we will own, even though we will construct them. And also, for any upgrades to the transmission system that are required to support them interconnecting."

The deal for power with the PUD comes after Microsoft and the Chelan Douglas Regional Port Authority signed an agreement June 1 for more than 100 acres of land near the old Alcoa plant.

Specifics of the Microsoft payment schedule is still to be ironed out.

Davis said there are safeguards in place to protect the PUD from incurring costs beyond what's agreed to with company.

PUD Commissioner Ann Congdon says she's satisfied their interests will be protected in the agreement.

"I'm sure that the attorney was involved in making sure that the agreement was binding, not only on our part, but Microsoft's part, or any other large load customers"

PUD Commissioners heard details on the interconnection agreement Monday, while transmission service and power will be handled separately.

Microsoft also is building a data center near Pangborn Airport in Douglas County, and already has a large footprint in Quincy.