Washington Democrats Tout 4.5% GDP Growth as Cities Impose 1-Year Data Center Bans
Updated
Updated · seattlered.com · Jul 7
Washington Democrats Tout 4.5% GDP Growth as Cities Impose 1-Year Data Center Bans
2 articles · Updated · seattlered.com · Jul 7
Summary
Washington posted the nation’s fastest first-quarter GDP growth at a 4.5% annualized rate, and Democrats cited it as evidence of strong state leadership.
The growth came largely from the information sector, with economists tying the surge to AI spending as Amazon and Microsoft are projected to invest about $390 billion in AI infrastructure this year.
Seattle and Spokane then moved the other way: Seattle approved a one-year moratorium on large data centers in June, and Spokane passed its own yearlong ban on a 6-1 vote.
The broader labor picture is weaker, with Washington unemployment at 5.2% versus 4.3% nationally and just 2,300 net payroll jobs added over the past 12 months.
That split underscores the central tension in the state economy: AI-driven output is lifting GDP while local restrictions risk pushing future data-center investment and related jobs to other states.