According to DCD, Amazon has filed a formal complaint against Berkshire Hathaway-owned utility PacifiCorp with Oregon’s Public Utility Commission. The cloud giant claims PacifiCorp has failed to meet power obligations dating back to 2021 for its AWS data centers in the state. One AWS campus reportedly has “insufficient power,” another has no power at all, and PacifiCorp has refused to complete standard contracting for third and fourth data center campuses. Amazon has been operating its US West 2 Oregon region from these facilities since around 2011, with expansions continuing through 2017 and into 2025. The company recently purchased 400 acres in Arlington for further expansion but noted it could take years to secure power and permits.
The Real Power Crunch
Here’s the thing – this isn’t just a contract dispute. We’re seeing the physical limits of our electrical grids collide with the explosive growth of AI and cloud computing. Amazon‘s Oregon data centers power its entire West 2 region, which means real customers could be affected if this isn’t resolved quickly. And let’s be honest – when Amazon can’t get enough electricity, something’s seriously wrong with our infrastructure planning.
Basically, every tech company is hitting this wall simultaneously. Data centers are becoming power hogs on a scale we haven’t seen before, and utilities simply weren’t prepared. PacifiCorp serves multiple states and probably has other big customers demanding power too. But when you’ve got commitments dating back to 2021 that still aren’t met? That suggests deeper systemic issues.
Amazon’s Power Play
What’s really interesting is how Amazon has been scrambling for alternatives. They applied to power three data centers with Bloom Energy natural gas fuel cells in 2023, though they withdrew those plans recently. They also signed a power purchase agreement for a 98.4MW wind farm in February 2024. So they’re clearly trying everything – renewables, backup generation, the works.
But here’s the kicker: even with all these efforts, they’re still hitting walls. That 400-acre purchase in Arlington? They openly admitted it might be years before they can actually get power to the site. That tells you everything about how constrained the situation really is. When Amazon – with all its resources and negotiating power – can’t reliably get electricity, what hope do smaller companies have?
The Bigger Picture
This complaint is probably just the first of many we’ll see. The AI gold rush means every cloud provider is building data centers as fast as they can, but the power infrastructure literally can’t keep up. We’re talking about facilities that can consume as much electricity as medium-sized cities.
So what happens next? Either utilities figure out how to dramatically accelerate grid upgrades (unlikely given regulatory hurdles), or we’ll see more companies turning to alternative power sources like fuel cells and massive battery storage. Or maybe both. But one thing’s clear – the era of cheap, abundant electricity for data centers is over, and the race to secure power is becoming as competitive as the race to develop AI models themselves.
