Data center do-over? New study shows how much they cost Oregon
A new study reveals the significant electricity and water costs associated with data centers in Oregon, finding they consume nearly a quarter of the state's retail electricity. The report highlights challenges in tracking water usage and the limited direct employment data centers provide. This has led to a major shift in public and political sentiment, with communities like Hillsboro enacting moratoriums and other policymakers considering restrictions.
Data centers in Oregon, including 67 hyperscale facilities and 32 planned developments, currently occupy 22.1 million square feet, with an additional 7 million planned. These facilities consume approximately 23% of Oregon's retail electricity sales, a figure projected to rise to 25 terawatt-hours by the end of the decade, enough to power 2.5 million homes. This demand strains the state's aging infrastructure and existing hydroelectric resources.
The study by ECONorthwest and the University of Virginia, funded by the Lemelson Foundation, faced challenges in quantifying water usage due to inconsistent reporting. While data centers offer opportunities for third-party contractors, direct employment is low, with only 0.2% of Oregon's workforce employed in the sector, predominantly in Eastern Oregon.
Public opinion has shifted significantly from actively courting data centers with tax breaks to expressing concerns over resource consumption and environmental impact. Cities like Hillsboro have enacted moratoriums, and policymakers across the state are now considering similar restrictions amidst increasing demand fueled by the AI boom. The report also estimates that tax exemptions for data centers range from $230 million to $450 million, while property tax revenue brought in about $60.2 million.