Oregon governor says state is a ‘cheap date’ for data centers
Oregon Governor Tina Kotek is advocating for new safeguards against data center expansion, citing concerns over tax breaks, water usage, and especially energy consumption. A major utility, Portland General Electric, has proposed a 29% rate increase for data centers, awaiting a state regulatory decision next week. A recently enacted moratorium on data center tax breaks has also led to legal challenges.
Oregon Governor Tina Kotek announced plans to implement new safeguards against unchecked data center expansion, stating the state needs to stop being a "cheap date" for these facilities. She indicated that specific actions would follow recommendations from an advisory committee she formed in January, focusing on ensuring tax breaks are not overly generous and that power and water consumption do not burden residents.
Kotek's comments align with a proposed 29% increase in power rates for data centers by Portland General Electric (PGE), Oregon's largest utility. This rate hike, currently awaiting a decision from the Public Utility Commission, is a direct result of a new state law allowing higher rates for high-energy users. Bob Jenks, executive director of the Citizens Utility Board, praised the proposal as "right for Oregonians."
Environmental and land-use advocates, including Nora Apter of Climate Solutions, are urging further action, calling for a "comprehensive statewide strategy for responsible data center growth." The rapid expansion of data centers has generated significant public backlash, particularly regarding water and electricity use, and has become a contentious political issue, exemplified by a state Senate race in Hillsboro where an incumbent was unseated due to perceived favoritism towards data centers.
The governor herself faced pressure, ultimately supporting a roughly one-year moratorium on some data center tax breaks after initially resisting. However, this moratorium led to companies rushing to secure benefits before it took effect, resulting in an "ongoing legal battle."