Oregon Governor Pauses Data Center Permits Until July 2027

Governor Tina Kotek ordered the Oregon Department of Environmental Quality to pause the processing and issuance of air and water pollution permits for new or expanded data centers until July 1, 2027. The directive covers National Pollution Discharge Elimination System and Title V air quality permits, as well as municipal wastewater treatment plant modifications. This action expands a previous moratorium on state-owned lands to effectively halt most hyperscale development on both public and private land.

Kotek stated the pause provides an opportunity to digest recommendations from the Data Center Advisory Committee and prepare for potential regulatory reforms during the 2027 legislative session. The order may specifically impact a proposed Amazon hyperscale facility in Boardman.

Amazon Web Services criticized the move as abrupt and lacking stakeholder engagement. The company warned the directive could eliminate thousands of construction and operational jobs and halt billions of dollars in planned investment. In contrast, the nonprofit Oregon Rural Action supports the pause as a necessary step toward regulating water and electricity consumption.

Following the governor's order, Senator Russet Perry released draft legislation, SB843, which proposes a formal three-year statewide moratorium on data centers from July 2027 to July 2030. Perry argued that the industry has grown unchecked, contributing to rising electric bills and threatening local infrastructure.