Hermiston, Umatilla push back against data center moratorium
Hermiston and Umatilla are challenging Oregon Gov. Tina Kotek's moratorium suspending air and water pollution permits for new or expanding data centers through July 1, 2027. Umatilla declared a state of emergency and requested that the directive be withdrawn or modified, while Hermiston is examining potential legal remedies and warning of billions of dollars in lost investment and revenue.
Oregon Gov. Tina Kotek directed the Oregon Department of Environmental Quality to stop issuing air and water pollution permits for new or expanded data centers through July 1, 2027, including permits needed to support data center wastewater operations. The order has prompted opposition from the cities of Hermiston and Umatilla in Umatilla County.
The Umatilla City Council declared a state of emergency and formally asked Kotek to reconsider or withdraw the directive, citing risks to industrial investment, jobs, municipal revenue and planned infrastructure. City Manager Dave Stockdale said the declaration is intended to protect long-term financial planning rather than address an immediate budget crisis.
Hermiston Deputy Assistant City Manager Mark Morgan said the city and partner agencies are evaluating legal options. Hermiston estimates the moratorium could cost taxpayers and Oregon's School Fund between $500 million and $1 billion in anticipated revenue after the city annexed about 800 acres with hyperscale data center overlay zoning. Umatilla estimates more than $5 billion in private investment and thousands of jobs could be delayed or jeopardized.