Nine months in, Kotek’s Data Center Advisory Committee shares many questions, few answers
Oregon Governor Tina Kotek's Data Center Advisory Committee has released a preliminary report after nine months of work, raising more questions than answers about data center development in the state. The report calls for greater oversight and transparency regarding data center energy, water usage, and tax incentives. This comes amid significant public opposition and a proposed statewide moratorium on data center approvals on state land.
Oregon Governor Tina Kotek's Data Center Advisory Committee has published a 20-page "preliminary learnings and questions" report for public comment, deviating from its initial mandate to provide a cost-benefit analysis. The seven-member committee, appointed nine months ago, was recently directed to synthesize its findings before submitting final recommendations to the governor by year-end, after the November election. The public has until October 24 to provide feedback.
While the report lacks specific policy recommendations, the committee identified a consensus on the need for increased oversight of the data center industry and a centralized database detailing data centers' type, resource consumption (water and energy), and the tax incentives they receive. This report emerges as data center growth has become a contentious issue in Oregon's gubernatorial race, with both Governor Kotek and her Republican opponent, state Sen. Christine Drazan, positioning themselves as industry challengers.
Last week, Governor Kotek expressed support for a statewide data center moratorium, announcing a roughly one-year pause on new approvals for data centers on state-owned land or in state buildings, while noting the state's limited authority to enforce a broader ban. The committee has received over 700 written and nine hours of verbal comments, with approximately 90% expressing opposition, primarily from the Portland metro area. Utility affordability was the most frequent concern.
The report also highlights Oregon's attractiveness to data centers due to tax benefits and climate, leading to a significant increase in facilities. Despite their economic contributions, the lack of transparency due to NDAs hinders information gathering. Committee members noted the growing energy, water, and land demands, identifying seasonal water competition as a major issue and questioning how the industry can drive clean energy investment. Concerns about overly generous tax breaks, exemplified by Morrow County's assessor reporting $7.2 billion in tax-exempt data center property by 2025, also featured prominently.