Oregon governor pauses state land requests for data centers
Oregon Governor Tina Kotek has issued an immediate pause on all state land transactions and permits for new data center projects through July 1, 2027. This decision aims to assess the significant demands data centers place on Oregon's water, energy, infrastructure, and natural resources, ensuring these costs are not shifted to residents. The order follows a previous block on a data center land sale in Salem and is an administrative tool in the absence of a statewide moratorium on private development.
Oregon Governor Tina Kotek has ordered an immediate pause on all unapproved state land transactions and permits for new data center projects on public land, effective until July 1, 2027. This executive action prevents state agencies from granting easements, leases, rentals, land-use permits, or sales/transfers of state-owned property for data center development. Governor Kotek stated the pause is necessary to evaluate the substantial demands data center corporations place on the state's water, energy, infrastructure, and natural resources, preventing these costs from burdening Oregonians.
This decision builds on the Governor's earlier move to block the sale of 32 acres of state land at the Mill Creek Corporate Center in Salem, which had been slated for a data center. Due to current limitations on issuing a statewide moratorium on private data center development, this land transaction pause represents one of the immediate administrative measures available to the Governor.
In the past, Oregon has taken steps to regulate the industry's utility impact, including the 2025 Protecting Oregonians With Energy Responsibility (POWER) Act, which increased electricity rates for data centers by 29% while lowering rates for other Portland General Electric customers. An advisory committee, formed in January, is expected to present policy recommendations by the end of the year, which Governor Kotek intends to use in drafting new legislation during the 2027 legislative session.