They’re rivals in the cloud, and competitors for customers and talent. But Microsoft and Amazon are on the same page when it comes to Washington state’s housing crisis — literally, in the case of an op-ed Friday and full-page ad last Sunday in The Seattle Times.

The Seattle region “faces a housing emergency that threatens our state’s quality of life, health and economic competitiveness,” write Brad Smith, Microsoft’s vice chair and president, and David Zapolsky, Amazon’s chief global affairs and legal officer.

It was an unusual joint byline, to say the least, but it reflected the similar big-picture goals of their separate housing initiatives. 

Combined, the two companies have committed $1.6 billion to preserve and build more than 26,000 affordable homes in the region. But the executives say even that isn’t enough, framing the problem as a supply issue that requires building “more homes of all kinds.”

They’re backing several bills in the current legislative session, including SB 6026, which would allow residential development on commercial land like strip malls and big-box stores. They also praise Gov. Bob Ferguson’s proposed $225 million in bonds for the state Housing Trust Fund.

“Going forward, legislators must commit to a simple test: If a policy makes housing more costly or takes longer to build, don’t pass it. Consider an alternative,” they write. “Enact policies that pencil in today’s market, not aspirational measures that might work down the line.”

They warn that other states are moving faster to attract developers. “Capital is fluid,” they write. “Banks, investors and lenders are going where they can make predictable returns.”

The joint push comes after Microsoft released a report last week outlining lessons learned from its housing investments. Read our earlier coverage for more details.

While artificial intelligence is generating all the buzz, it was Washington state’s climate tech and healthcare innovation that got shoutouts during Gov. Bob Ferguson’s State of the State address on Tuesday.

The speech largely focused on this winter’s epic flooding in Western Washington, the affordability and housing crisis, transportation infrastructure needs and Ferguson’s support for a “millionaire’s tax” targeting the state’s wealthiest residents.

The traditional tech sector — which accounts for roughly 22% of the state economy — was largely absent from the governor’s address. But he did call out groundbreaking innovation happening across Washington.

Ferguson praised Helion Energy’s efforts to build what could become the first commercial fusion reactor — a world-changing accomplishment, provided the device works as planned. Helion, based in Everett, Wash., broke ground on the Orion facility last summer and aims to get the Eastern Washington plant operating by 2028. Microsoft agreed to buy energy from the plant if Helion is successful in harnessing fusion power.

The governor also called out last week’s official launch of the Cascadia Sustainable Aviation Accelerator, an effort to support R&D and build out a marketplace for low-carbon aviation fuels. The event, which was held north of Seattle, brought together Boeing, Amazon, Alaska Airlines and others.

In his speech, Ferguson framed the initiative as “an opportunity for our state to, once again, set an example and set the pace for clean energy investment.”

And he gave a nod to the University of Washington, Fred Hutch Cancer Center and the Allen Institute as “part of a globally recognized ecosystem working on next generation drug discovery and treatments.” The Seattle area is a hub for academics and startups developing AI-driven therapies, with many building on innovations from the UW lab of Nobel Laureate David Baker.

“These are just a few of the reasons why the state of our state is strong, but I am clear eyed,” said Ferguson, who is navigating a multibillion-dollar budget shortfall. “I’m clear eyed about the areas where we must do better, and my first proposed budget is laser focused on those improvements to keep our growth going.”

This story first appeared in the Washington State Standard.

Joe Nguyen is stepping down as director of Washington state’s Department of Commerce and is expected to be named the next leader of the Seattle Metropolitan Chamber.

Nguyen told Commerce employees on Tuesday that he is leaving but didn’t disclose his new job. He said he didn’t anticipate taking off “until sometime in January.”

“Although I can’t tell you where I’m going just yet, I will be working in Seattle, closer to home,” he wrote in an agencywide email. “Sometimes opportunity knocks, even when you haven’t invited anyone to your door. Recently I was offered an opportunity outside of Commerce that I have accepted because it was the right thing to do for my family.”

The chamber, an independent business organization with 2,600 members, plans an announcement Monday concerning its chief executive officer position. A spokesperson declined further comment.

Rumors of Nguyen’s selection had begun circulating online and among business lobbyists in recent days. Nguyen did not return multiple phone calls for comment.

The job has been open since Rachel Smith left as the organization’s president and CEO to become president of the Washington Roundtable.

Nguyen, a White Center Democrat, was in his second term in the state Senate representing the 34th Legislative District when Gov. Bob Ferguson named him to the high-ranking post. He is the first member of Ferguson’s executive cabinet to quit, though others have retired. 

Nguyen led an agency with a $7.9 billion budget and that administers more than 100 programs in the areas of housing, energy, community and economic development, local government and business services. One of its largest portfolios is promoting development of affordable housing, a top priority of Ferguson’s.

In his email to employees, Nguyen wrote he was “honored” that Ferguson “put his faith in me nearly a year ago and I thank him for that trust.” He said he did not know if Ferguson would install an interim leader or hire a new director right away.

In a statement, Ferguson praised the outgoing director and didn’t say how he plans to replace him.

“I spoke with Joe, and it’s clear he received an offer he couldn’t refuse,” Ferguson said. “I deeply appreciate Joe’s work this past year. Joe always has an open invitation to join my administration in the future.”

Republished from Washington State Standard under Creative Commons license CC BY-NC-ND 4.0.

Washington Gov. Bob Ferguson is setting aside $350,000 from an economic development fund to support Portal Space Systems’ expansion into a new 50,000-square-foot satellite manufacturing facility in Bothell, Wash.

Ferguson announced today that he’s directing the state Department of Commerce to award funds from the Governor’s Economic Development Strategic Reserve Fund to Economic Alliance Snohomish County. The funding will help Portal transition from testing and development to scalable production, with a goal of building four spacecraft a month by 2027.

The expansion is expected to create more than 100 jobs in the next two years, and more than 700 jobs by 2030.

“Strategic Reserve Funds are targeted investments that create good paying jobs and spur innovation across Washington,” Ferguson said in a news release. “This project not only achieves those goals, it also reaffirms our state’s role as a leader in the space industry. I am proud to support pioneering projects like this in Washington.”

Portal already operates an 8,000-square-foot facility in Bothell, where it’s been developing the hardware for its flagship Supernova in-space mobility platform and a smaller spacecraft dubbed Starburst. Supernova will feature an innovative solar thermal propulsion system, which uses concentrated sunlight as a heat source for its thrusters. Both spacecraft are designed to provide greater mobility for commercial and government payloads in orbit.

“We’ve spent the last year proving what’s possible. Now we’re scaling to deliver it,” Portal co-founder and CEO Jeff Thornburg said. “This support from Washington isn’t just about growth. It’s about building a strategic capability for the nation and doing it right here in Bothell.”

Revenue for the Strategic Reserve Fund comes from unclaimed lottery prize money. The funds are intended to attract and retain jobs and economic investment in Washington, limited to highly strategic projects that deliver significant job creation and capital investment. These projects are considered in partnership with local associate development organizations, such as Economic Alliance Snohomish County. The governor determines awards based on recommendations from the Department of Commerce.

“Portal Space Systems represents the kind of bold, future-facing innovation we’re proud to see growing in Washington,” said Commerce Director Joe Nguyen. “With the governor’s new investment, Portal is better equipped to scale up its cutting-edge operations. This strengthens Washington’s position as a hub for world-class talent and national space infrastructure.”

Grants from the Strategic Reserve Fund must be accompanied by private investment. Since its founding in 2021, Portal has raised more than $22 million in venture capital financing and grants, and received a commitment of $45 million in public-private funding through the U.S. Space Force’s STRATFI program.