On the arid edge of central Washington, the quiet town of Quincy is undergoing a transformation that’s rippling far beyond its potato fields. Once best known for its agricultural output, Quincy now stands at the crossroads of a global technological revolution: the AI-powered data center boom. This surge, echoing across the United States and the world, is reshaping not just local economies but the very infrastructure that powers modern life.
According to an April 2025 report by the International Energy Agency (IEA), the explosion of artificial intelligence (AI) and the relentless growth of data centers are projected to consume 945 terawatt-hours (TWh) of electricity annually by 2030—roughly equal to the entire current consumption of Japan. The U.S. is at the epicenter of this demand, with data centers expected to account for nearly half of the nation’s electricity demand growth between 2025 and 2030, as reported by AInvest and the IEA.
This isn’t just a technical story. It’s an economic one, too. The sector is projected to require a staggering $6.7 trillion in capital expenditures by 2030, with $5.2 trillion earmarked specifically for AI-focused infrastructure. That’s a sum that rivals the GDP of major nations, and it’s already attracting a flood of investment from utilities, tech giants, and Wall Street.
In Quincy, the impact is visible on every corner. The town’s population of about 7,500—majority Hispanic and historically agricultural—has seen its poverty rate drop from 29.4% in 2012 to 13.1% in 2023, according to census data cited by OPB. “First time ever in my history of living in Quincy, we had a full police force because they could afford it,” said Lisa Karstetter, a local who has worked in community relations for both Yahoo and Microsoft data centers. “New fire station, new library, you had all of these things come in that could support the agriculture.”
Data centers now pay about 75% of Quincy’s property tax revenue, enabling investments in public amenities like the Quincy Valley Medical Center, which opened in May, and a recently renovated high school. “It wouldn’t have been possible without the data center presence here in our community and the support of voters that helped us pass it,” said Superintendent Nik Bergman, referring to the $108 million bond that funded the school’s transformation.
But prosperity comes with its own set of challenges. Data centers are notorious for their enormous appetite for electricity and water. While the Columbia River’s hydropower has so far cushioned Quincy from the worst effects, critics worry about the long-term sustainability of such growth. Patty Martin, a former mayor and environmental activist, warned, “That’s a snapshot in time. That’s something you benefit from right now. The question is, what’s the long-term effect?”
Martin and fellow activist Danna Dal Porto point to the strain on resources and the risk that, in times of shortage, residents could face blackouts or water restrictions while data centers continue to operate. “You don’t cool it, it’s gonna overheat… You turn off the power… it’s gonna go away. So, it’s all about the data centers,” Martin said to OPB.
Utilities and investors are scrambling to keep up. Companies like Bloom Energy are deploying behind-the-meter fuel cells and microgrids to power data centers independently of the grid. In a record-breaking deal, Bloom Energy and AEP completed a 1-GW fuel cell project to support these facilities. Meanwhile, National Grid UK has invested $100 million in startups like Amperon, which use AI to optimize grid performance and reduce interconnection lead times.
Legacy infrastructure is also getting a makeover. In Pennsylvania, a $10 billion project is converting a retired coal plant into a gas-powered facility tailored for AI data centers, leveraging existing grid connections for a new era. And the push for clean energy is accelerating: advanced nuclear, geothermal, and even fusion energy are being prioritized, with Goldman Sachs estimating $720 billion will be needed for grid expansion by 2030.
The regulatory environment is a mixed bag. Outdated frameworks have led to seven-year backlogs for data center grid connections, as reported by PJM Interconnection. FERC’s Order 2023 is attempting to address this by shifting to a “first-ready, first-served” model, while programs like ERCOT’s Controllable Load Resource allow data centers to interconnect within two years by participating in demand response initiatives. MISO’s Expedited Resource Adequacy Studies have managed to reduce interconnection costs by 30%—a rare bit of good news for investors and operators alike.
But bottlenecks remain. Environmental impact statements can take over two years to complete, and state-level restrictions have doubled in the past year. There’s also growing concern about residential affordability as data centers are projected to consume 12% of U.S. electricity by 2028. Proposed solutions include separate rate classes for data centers and demand-based tariffs to protect ordinary ratepayers.
For energy companies, the AI boom is a gold rush. GE Vernova’s Gas Power business, for example, is experiencing soaring demand for its aeroderivative and heavy-duty gas turbines. In July 2025, GE Vernova received an order for 29 LM2500XPRESS units to power Crusoe AI data centers, and its gas turbine sales jumped an eye-popping 213.3% in the second quarter of 2025 alone, according to Zacks Investment Research. Siemens Energy and Chevron are also expanding their footprint, with Siemens partnering with Eaton to enable simultaneous construction of data centers and on-site power generation, and Chevron collaborating with GE Vernova to deliver 4 gigawatts of power by 2027.
Yet, the risks are real. Regulatory uncertainty, supply chain constraints (with copper and steel prices up 40% over five years), and political backlash over utility rates could all slow the pace of expansion. Investors are advised to diversify across utilities, renewables, and AI hardware, keep a close eye on regulatory changes, and prioritize companies with strong ESG credentials and innovative approaches to grid management.
In Quincy, the data center boom has brought new businesses and a sense of optimism—along with a healthy dose of caution. Sharyl Smith, who opened Monkey ‘N’ Around Pizza to serve the influx of construction workers, summed it up with a touch of anxiety: “It’s a little scary… my connections are the construction workers.”
As the AI-driven energy infrastructure boom continues, towns like Quincy offer a preview of both the rewards and the risks. The balance between rapid technological progress and long-term sustainability remains delicate—and as billions more are invested and new data centers rise, that question will only become more urgent.
