Oregon governor sets broad-based pause on data centers

Oregon Governor's Office

Oregon Gov. Tina Kotek directed every state agency to immediately pause unapproved requests for easements, rights-of-way, leases, rentals, land-use permits, and sales or transfers of state-owned property for data center projects.

The pause ordered by Kotek Tuesday remains in effect through July 1, 2027, or until statewide action from the governor's office or the Legislature directs otherwise.

"Data center corporations are asking communities to absorb enormous demands on our water, energy, infrastructure, and natural resources, and we need to know what that means for Oregonians," Kotek said in a statement.

This broader action comes after Kotek halted the sale of land for a data center in Salem following protests from residents.

"I am taking this action because the state should not be moving forward with new data center projects on public land while we are still working to understand and address those impacts," Kotek said.

Many states have been struggling as data centers proliferate to meet the power needs of Artificial Intelligence.

Oregonians deserve a statewide approach that protects the state's communities, respects its natural resources, and makes sure state government is acting in the public interest, she said.

The governor took that action in order to ensure a coordinated statewide evaluation of the long-term impacts associated with large-scale data center development, including infrastructure capacity, environmental sustainability, water usage, job creation, and the effects on surrounding communities, she said.

This directive to state agencies builds upon the governor's decision to stop the planned sale of approximately 32 acres of state land at the Mill Creek Corporate Center in Salem for a proposed data center project. That decision reflected a commitment to ensuring that state actions uphold Oregon's values and serve the public interest, according to the governor's office.

While the state lacks authority to enact a statewide moratorium on data center development, Kotek said the action reflects her commitment to taking steps within the state's control immediately.

Kotek signed the Protecting Oregonians With Energy Responsibility (POWER) Act in 2025 to create accountability for data center electricity use, and the new law has already resulted in a 29% increase in electricity rates on data center corporations and rate decreases for all other ratepayers served by Portland General Electric, according to the governor's office.

In January, Kotek convened the Oregon Data Center Advisory Committee to develop policy recommendations to address growth in data centers and keep utility costs, infrastructure upgrades, and environmental impacts sustainable for all Oregonians, particularly low-income and working households and ratepayers.

The Oregon Data Center Advisory Committee will provide its final recommendations to the governor by the end of the year. Kotek plans to introduce legislation based on the recommendations during the 2027 legislative session.