Oregon already has 100+ data centers. Clackamas County wants to be ready if one comes next

Clackamas County commissioners in Oregon have initiated discussions to prepare for potential data center development within the county, even though there are no current proposals. During a recent policy session, county staff informed commissioners about existing data center regulations and experiences from other Oregon communities regarding economic development and the demands on power, water, and infrastructure. Commissioner Vasili Varlamos emphasized the importance of proactively understanding the implications before development applications arrive, ensuring they consider both the benefits, such as job opportunities, and drawbacks.

Oregon is a significant hub for data centers, ranking ninth nationally with 125 active facilities. The highest concentrations are in the Columbia River Gorge (Morrow, Umatilla, Wasco counties) and Northwest Oregon (Washington and Multnomah counties). A Gallup poll indicated widespread public opposition to data center construction in local areas. The county leaders, however, aim to present a balanced view, acknowledging potential assets these facilities could bring to small communities, such as workforce improvement and job creation. They plan to await legislative action at the state level during the 2027 session before making local decisions.

In a related development, a new rate class for data centers went into effect for Portland General Electric Power Company, making it the first in Oregon to implement a state law passed last year. This law mandates power companies to charge data centers for their burden on the power grid, resulting in an almost 30% increase for data centers and a 1.3% decrease for residential customers. According to the President of Oregon's Citizen Utility Board, this reassigns approximately $900 million in costs over 30 years from non-data center customers to data centers.

The discussion also referenced a report by the Department of Energy's Lawrence Berkeley National Laboratory, led by staff scientist Armon Shahabi, which tracks data center energy use. The report noted a significant increase in electricity use since 2018, primarily due to accelerated servers used for AI computations. Data centers currently consume about 5% of U.S. electricity, projected to double or triple to 10-15% by the end of the decade. Shahabi also discussed future research into efficiency strategies and how data centers might flex their power usage to help the grid.