Oregon House District 52 Race Splits Over Data Centers
The Oregon House District 52 race has become a central battleground for data center policy, pitting candidates against each other over state versus local control and tax breaks for tech companies like Google. Significant issues include Google's substantial water usage in The Dalles, rising electricity costs for data centers due to new legislation, and the implementation of various moratoriums and regulatory restrictions. Both state and local governments have taken action to regulate data center development and resource consumption.
The open race for an Oregon House seat in District 52, covering the Columbia River Gorge from The Dalles to Hood River, has intensified into a major debate over the control and costs associated with data center growth. Republican Wasco County Commissioner Scott Hege and Democratic newcomer Hank Sanders are vying for the seat, with their campaigns highlighting differing views on data center tax breaks and development oversight.
Key issues fueling the debate include Google's data center campus at the Port of The Dalles, which began construction in 2006. Reports indicate Google's water usage in The Dalles rose significantly, reaching 434 million gallons in 2024, accounting for approximately 40% of the city's water supply. Sanders advocates for a statewide data center moratorium, a position echoed by Gov. Tina Kotek, to address these complex issues, while Hege supports local control over development decisions and has approved significant tax incentives for Google over the years.
The political contest unfolds amidst broader state-level actions to regulate the data center industry. Oregon's Legislature enacted the POWER Act (HB 3546), requiring data centers to pay for their energy, which led to a 29% average electricity rate increase for data centers in Portland General Electric's territory. Additionally, House Bill 4084 introduced a temporary statewide moratorium on property tax exemptions for new data center projects until 2027. Local municipalities like Hillsboro and Woodburn have also enacted their own 120-day moratoriums on data center development due to grid capacity and utility infrastructure concerns. Furthermore, the Oregon Public Utility Commission is reviewing a settlement that would require new data center developments to fund their own generation and transmission infrastructure.