Amazon on the Columbia

| Print |  Email
Archives - December 2008
Monday, December 01, 2008

BOARDMAN Amazon.com is coming to the Port of Morrow. Sort of.

More accurately, Amazon.com is preparing to move a mountain of servers next to the Columbia River to take advantage of the same low hydropower rates that have enticed Microsoft, Yahoo and Google to do likewise. The more powerful the leading Internet companies become, the more power they require, and their power source of choice is the Columbia, with bargain wholesale rates of 2.5 cents per kilowatt-hour.

Exactly how much electricity will go to Amazon remains a mystery. The public agencies that negotiated the deal signed a nondisclosure pact with the bookselling behemoth. But you can bet it will be no small amount, somewhere between 20 and 100 megawatts depending on who is guessing.

In a remote location like Boardman, trading cheap power for new jobs and property taxes is a no-brainer. But the door will be closing soon. The public utilities that buy power from Bonneville Power Administration will no longer be permitted to add significant new wholesale power users starting in 2012. That explains the rush by Amazon and Google to get it while they can. The Umatilla Electric Cooperative sells power to the Port of Morrow at some of the nation’s lowest rates.

Each new data center contains thousands of servers, miles of underground conduit and millions of dollars worth of copper wiring. Very futuristic, but in a way it’s nothing new. Since World War II aluminum companies have sapped the Columbia for cheap power. At the height of the industry more than one-third of the BPA’s electricity went to aluminum companies.

That story ended badly. Aluminum companies started selling power for windfall profits on the open market rather than providing jobs. BPA pulled the plug on the bad actors in 2001, leaving behind company towns without companies.

Amazon and Google provide fewer local jobs than aluminum companies. But they do know a thing or two about innovation.

“The problem with most of the aluminum companies is that they were always short-term thinkers,” says Steve Weiss, a senior policy associate for the Northwest Energy Coalition. “These new players like Google and Amazon definitely have long-term vision. They may end up developing into interesting new partners.”

BEN JACKLET


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

Business partnerships: taming the three-headed monster

Contributed Blogs
Monday, July 06, 2015
070615-businessmarriagefail-thumbBY KATHERINE HEEKIN | OB GUEST COLUMNIST

Picking a business partner is not much different than choosing a spouse or life partner, and the business break-up can be as heart-wrenching and costly as divorce.


Read more...

Modern design defines new Portland indoor market

The Latest
Thursday, June 25, 2015
thumbSnøhetta JBPM exterior www mir noBY KIM MOORE | RESEARCH EDITOR

An international architecture firm known for its design of the National September 11 Memorial Museum Pavilion in New York unveiled its plan this week for a modern indoor/outdoor food market at the foot of the Morrison Bridge in downtown Portland.


Read more...

6 key things to know about summer baseball in Oregon

The Latest
Friday, June 05, 2015
basedthumbBY JACOB PALMER | DIGITAL NEWS EDITOR

As temperatures in Oregon creep into the 90s this weekend, Oregonians' thoughts are turning to — summer baseball.


Read more...

Photo log: Murray's Pharmacy

The Latest
Friday, July 17, 2015
OBM-Heppner-Kaplan thumbBY JASON KAPLAN

Photographer Jason Kaplan takes a look at Murray's Pharmacy in Heppner.  The family owned business is run by John and Ann Murray, who were featured in our July/August cover story: 10 Innovators in Rural Health Care.


Read more...

Marijuana law ushers in new business age

The Latest
Tuesday, June 23, 2015
062315panelthumbBY KIM MOORE | RESEARCH EDITOR

Oregon’s new marijuana law is expected to lead to a bevy of new business opportunities for the state. And not just for growers. Law firms, HR consultants, energy efficiency companies and many others are expected to benefit from the decriminalization of pot, according to panelists at an Oregon Business breakfast meeting on Tuesday.


Read more...

Department of Self-Promotion

Linda Baker
Wednesday, June 17, 2015

061715-awards1Oregon Business wins journalism awards.


Read more...

Reader Input: Rx for Health Care

July/August 2015
Wednesday, July 15, 2015

We asked readers how Obamacare has impacted their business.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS