Kotek data center advisers won’t say ‘moratorium,’ want more state-local partnership, transparency
An advisory committee appointed by Oregon Governor Tina Kotek has decided against recommending a statewide moratorium on new data centers. Instead, the committee will propose policy recommendations to the 2027 Legislature focusing on state-local partnerships and increased transparency from the industry regarding their energy, water, and economic impacts. This decision comes amid growing calls for a moratorium and concerns over data center expansion in the state.
Governor Tina Kotek's data center advisory committee, formed earlier this year, has concluded its public discussions without recommending a statewide moratorium on new data centers. This decision comes despite increasing calls for such a pause from Democratic lawmakers, conservation groups, farmers, and residents in areas heavily impacted by data center development. Co-chair Margaret Hoffmann stated that the committee's mandate was not to consider a moratorium but rather to determine how Oregon could pursue economic development responsibly while stewarding natural resources.
The committee, comprising diverse members including Umatilla County Commissioner Dan Dorran, energy-industry veterans, and environmental law experts, will instead focus its policy recommendations to the 2027 state Legislature on fostering greater state and local partnerships and enhancing transparency from the data center industry. Discussions centered on data centers' significant water, land, and energy use, as well as property tax incentives. While water demands were largely dismissed as manageable due to recycling systems, the committee expressed concern over energy demands and regional grid capacity, suggesting that data center developers be required to invest in large-scale battery storage or clean energy projects.
The group acknowledged the economic benefits data centers bring to rural areas, citing Prineville's reduced unemployment rate following the arrival of Meta's facilities. However, concerns were raised about the lack of transparency surrounding local property tax abatement deals, which can amount to hundreds of millions in tax breaks annually for data centers. The committee advocated for a disclosure database to track detailed information on tax savings, employment figures, wages, and environmental impacts, asserting the necessity of measurement for effective management. The final report is expected in October, following a public meeting on September 23rd.