Oregon Governor Pauses State Land Data Center Approvals

Governor Tina Kotek implemented a roughly one-year pause on data center approvals for state-owned land and buildings following the release of a preliminary report on the industry's growth. While Kotek stated the state lacks the authority to enact a full statewide moratorium, the move comes as the state grapples with the rapid proliferation of AI-processing facilities.

The Data Center Advisory Committee released a 20-page report of preliminary learnings and questions, deviating from its original mandate to provide a cost-benefit analysis. The committee identified a critical lack of centralized information regarding energy and water consumption, as well as the actual impact of state tax incentives. Of the 31 facilities currently being sited in Oregon, the report found that eight are hyperscale AI-processing centers.

Public response to the industry has been largely negative, with approximately 90% of commenters expressing concerns over utility affordability. State Senator Christine Drazan has used the issue to position herself as a force to stop the proliferation of these centers. The public may submit comments on the committee's findings until October 24, with final recommendations due to the governor by the end of the year.