Lawmakers propose moratorium on large data centers in Oregon
Four Oregon Democratic lawmakers and two hopefuls are proposing a three-year moratorium on new data centers statewide, citing concerns over energy and water demand, farmland loss, and tax fairness. This follows recent local moratoriums in Hillsboro and Salem, a lawsuit against Washington County, and Governor Kotek's intervention in a Salem project. The proposal reflects a significant shift in public and legislative sentiment regarding data center development in Oregon.
Four Oregon Democratic lawmakers, including State Sens. Jeff Golden and Courtney Neron Misslin, and State Reps. Lesly Mu
Additionally, Hillsboro City Council recently passed a 120-day moratorium on new data center approvals, and Salem City Council is considering its own moratorium after Governor Tina Kotek intervened to block a data center company from purchasing state property in Salem. The Data Center Coalition, an industry group, warned that a moratorium would signal Oregon is "closed for business." The Legislature previously passed a one-year pause on a key tax incentive program for data centers in March.
Governor Kotek has convened a data center advisory committee to develop policy recommendations, with a draft report expected by mid-September. Lawmakers note a dramatic shift in public and legislative attitudes towards data centers in recent months, fueled by issues such as a lack of sales tax, generous property tax incentives, and relatively cheap electricity, which have made Oregon a significant data center hub.