Oregon data center debate: Governor Kotek orders pause on state land as lawmakers consider new rules
Oregon Governor Tina Kotek issued an order pausing new data center projects on state-owned land, facing calls for a broader statewide moratorium from protesters and some lawmakers. The action comes as the legislature considers new rules for data center development, addressing concerns about water and electricity use. Several cities in Oregon, including Hillsboro and Salem, are also implementing or exploring local moratoriums and regulations.
Oregon Governor Tina Kotek has issued an order directing state agencies to halt unapproved land sales and permits for new data centers on state-owned land. This move follows protests at the Oregon Capitol, where activists advocated for a broader statewide moratorium on data center development. Governor Kotek emphasized that her directive represents immediate action under current state law, while asserting that broader authority for a statewide pause would require legislative intervention. However, State Senator Christine Drazan, a 2026 Republican gubernatorial candidate, disagrees, claiming the governor possesses the authority to enact a statewide moratorium immediately, though she did not provide specific legal backing for this assertion.
The legislative response is also underway, with lawmakers, led by State Representative Mark Gamba, chair of the House Committee on Climate, Energy and Environment, examining the impacts of growing data center development. State agencies have testified on limited data concerning data center water use and the increasing demand on Oregon's electrical grid, with Gamba advocating for greater transparency in future legislation. While there's bipartisan interest in transparency, lawmakers like Republican State Representative Darcy Edwards expressed concern that a moratorium could jeopardize union construction jobs.
Beyond state-level actions, several Oregon cities are also taking steps. Hillsboro previously issued a 120-day temporary moratorium on new data centers to review policies. The City of Salem is exploring a 60- or 120-day moratorium and has formed a data center task force to gather community input. Portland City Council is considering a resolution to promote transparency by urging the mayor and city administrator against broad nondisclosure agreements for these projects. These local efforts complement statewide measures, including the previously passed "POWER Act," which reclassifies data centers for electricity billing, and a one-year moratorium on new tax breaks for data centers.