Oregon data centers generate $60 million in statewide tax revenue, research study finds
An ECONorthwest study found that Oregon's 111 data centers generate $60 million in tax revenue and employ over 2,600 workers. However, their electricity consumption, which has quadrupled since 2020, now equals 71% of all residential homes and could reach one-third of the state's total demand by 2030. Continued growth, with 32 more facilities planned or under construction, will necessitate major investments in power infrastructure.
An economic study by ECONorthwest and the University of Virginia, funded by The Lemelson Foundation, has revealed that Oregon's 111 operational data centers generate approximately $60 million in statewide tax revenue and employ over 2,600 on-site workers. Applied economist Terry Wirkola of ECONorthwest highlighted that the industry's power demands have nearly quadrupled since 2020, now consuming electricity equivalent to 71% of all Oregon households. Projections indicate this could account for one-third of the state's entire electricity demand by 2030.
The study identified two distinct data center markets within Oregon: Eastern Oregon, with 70 predominantly hyperscale facilities, contributes $37.6 million in tax revenue and 2,205 jobs. Western Oregon hosts 41 diverse facilities, generating $22.6 million in taxes and employing 425 workers. Despite the growing strain on utilities, 32 additional data centers are either planned or under construction statewide, with future expansion largely anticipated in Western Oregon.
Researchers emphasized that accommodating this growth pipeline will necessitate substantial investments in new power generation and regional transmission infrastructure. Industry operators continue to be drawn to Oregon by factors such as tax incentives, the absence of a state sales tax, robust fiber connectivity, and access to suitable land and utilities, with major development hubs located in Hillsboro and the Columbia River Gorge.