Data Center Backlash Decided an Oregon Senate Race in the Silicon Forest. It Could Factor Big in November.
Data center opposition significantly impacted an Oregon Senate primary election in Hillsboro, leading to the defeat of incumbent Sen. Janeen Sollman. The issue, driven by concerns over affordability, environmental impact, and utility rates, is now a major factor in statewide politics. Local governments are exploring ways to roll back incentives and impose new restrictions on data center development.
State Sen. Janeen Sollman (D-Hillsboro) lost her primary reelection bid to challenger Myrna Muñoz, largely due to her perceived support for data centers, despite her previous environmental record. The election in the 'Silicon Forest' district highlights the growing political backlash against data centers in Oregon, fueled by citizen concerns over land use, environmental impacts, and rising utility costs. Muñoz and other candidates across Oregon have successfully leveraged anti-data center sentiment.
Cities like Hillsboro, Prineville, Boardman, La Pine, and Portland are experiencing increased public opposition, with residents demanding changes to tax incentives and new restrictions. In La Pine, the City Council unanimously rejected a 20-megawatt crypto data center project proposed by businessman Jeff Keller. The Oregon Legislature has already approved a moratorium on new tax breaks for data centers, and Governor Tina Kotek has convened an advisory committee to develop policy recommendations by October.
Political consultants predict that data center issues will significantly impact the November general elections across the state. Activists in Hillsboro are even considering a recall petition against Mayor Beach Pace and are targeting City Council seats. Utility regulators recently paused a proposed 29% rate increase for data centers, reflecting broader efforts to shift costs away from ratepayers. Public figures, including Portland City Councilor Mitch Green and Tax Fairness Oregon's Jody Wiser, urge the governor to take a stronger stance on regulating data centers and their incentives, while some Portland city councilors are reconsidering their previous opposition to data center development downtown.