Why does Oregon have so many data centers? And why do we need more?
Oregon has become a major hub for data centers due to its climate, renewable energy, and tax breaks, but this growth has sparked significant public backlash. As a result, cities like Salem and Woodburn have enacted moratoriums, and the state legislature is considering further restrictions, including a statewide moratorium. Key issues include water consumption, electricity demands, and the impact of tax exemptions on local revenue.
Oregon has seen a significant surge in data center development over the past two decades, with 144 facilities either operational or planned, driven by factors such as a moderate climate, abundant renewable energy sources, and substantial tax incentives. Major tech companies like Amazon, Meta, and Google have established large presences in areas including Boardman, Umatilla, Hermiston, Prineville, and The Dalles.
However, this rapid expansion has led to considerable public backlash, making data centers a "hot-button issue" across all levels of Oregon politics. Governor Tina Kotek has expressed support for a moratorium to ensure future development aligns with the state's terms. In response to public sentiment, cities such as Salem and Woodburn have independently enacted 120-day moratoriums on new data center construction.
The Oregon State Legislature has also taken action, passing a law in 2026 that enacted a one-year moratorium on enterprise zone tax exemptions for new data centers. Furthermore, a broader statewide moratorium on new data centers is slated for consideration during the 2027 legislative session. Advocacy groups like Oregon Data Center Defiance are pushing for a three-year pause, along with stricter noise, light, and water pollution standards, public notice requirements, and the elimination of non-disclosure agreements.
Critical concerns raised by the public and officials include the immense water usage by data centers for cooling, particularly in cities like The Dalles, and their significant electricity demands. The POWER Act, enacted in 2025, mandated separate rate classes for data centers by investor-owned utilities like Portland General Electric, which subsequently raised data center rates by 29% while lowering residential rates.