Oregon counties, cities say data center moratorium could cost them millions - Oregon Public Broadcasting
Oregon Gov. Tina Kotek’s pause on certain data center permits has divided communities, with Umatilla and other rural governments warning of substantial lost revenue while Hillsboro supports tighter regulation. Umatilla officials declared a financial emergency, while Hillsboro approved permanent rules limiting data center acreage and considering height, noise and water standards.
Oregon Gov. Tina Kotek directed the Oregon Department of Environmental Quality to pause certain air and water permits for data centers through July, prompting strong opposition from rural communities that depend on fees and infrastructure contributions from the industry. Umatilla’s City Council declared an emergency over the expected financial impact, while Hermiston officials said Amazon canceled planned developments and that the city could lose hundreds of millions of dollars in anticipated fee revenue.
The Lower Umatilla Basin hosts major Amazon campuses in Boardman, Umatilla and Hermiston, while Apple and Meta operate hyperscale facilities in Prineville. Local officials argued that the pause threatens jobs, infrastructure projects and public services, whereas Hillsboro officials said growth should be limited because industrial land is finite and could support manufacturers. Hillsboro recently ended a temporary moratorium by unanimously approving permanent regulations that cap data center development at slightly more than 600 acres and may impose additional height, noise and water restrictions.