Woodburn Oregon Enacts 120-Day Data Center Moratorium
Woodburn, Oregon, has enacted a 120-day moratorium on new data center development, effective September 14, to review zoning, infrastructure needs, and environmental impacts. This action follows preliminary interest from a data center developer and is part of a broader trend of Oregon localities and the state government implementing measures to manage data center growth. The city also reclassified data centers as a conditional use, requiring public hearings for future projects.
The Woodburn City Council in Oregon has approved a 120-day moratorium on new data center development, effective September 14. This pause will halt the acceptance, review, and approval of related permits and proposals, allowing the city to reassess zoning, public utility infrastructure, and environmental criteria for data center locations. The decision, which drew significant public comment, was prompted by preliminary interest from developer Verrus, even though no formal applications had been filed. This follows a June amendment to the municipal development ordinance that reclassified data centers as a conditional use in the Southwest Industrial Reserve Area, necessitating public hearings for future projects.
Woodburn's action mirrors similar efforts across Oregon. Hillsboro, home to a high concentration of data centers, enacted its own 120-day moratorium in July. Governor Tina Kotek issued an executive directive on September 8, pausing state agencies from approving leases or permits for data centers on state-owned land through July 1, 2027. Additionally, four Democratic lawmakers, including State Representative Lesly Muñoz, plan to introduce legislation for a statewide three-year moratorium on large data centers in the 2027 legislative session, aiming to establish standards for energy grid stability, water usage, and farmland preservation.
Regulatory changes have also affected the industry; Oregon House Bill 4084 temporarily bars new data centers from property tax exemptions. Furthermore, the Oregon Public Utility Commission, under the 2025 POWER Act, created a dedicated customer class for large data centers over 20 megawatts, raising electricity rates by 29-30 percent for those served by Portland General Electric. This requires operators to sign long-term contracts and absorb full infrastructure costs. The Oregon Data Center Advisory Committee is also studying these issues, with public comment open until October 24, to inform 2027 state legislation, aligning with Woodburn's review timeline.