Oregon Pauses New Data Center Projects on State Land Through July 2027

Oregon is putting new data-center projects on state-owned land on hold as Governor Tina Kotek seeks to determine how the rapidly expanding industry will affect the state’s water, electricity, infrastructure, and communities.

Oregon Governor Pauses New Data Center Requests on State Land

Oregon Governor Tina Kotek has directed state agencies to immediately pause unapproved requests involving easements, rights-of-way, leases, rentals, land-use permits and sales or transfers of state property for data-center projects. The pause will remain in effect through July 1, 2027, unless statewide action ends it sooner.

The governor said Oregon should not approve new projects on public land while the state is still assessing their long-term impacts.

Oregon Seeks Statewide Approach to Data-Center Growth

The review will examine infrastructure capacity, environmental sustainability, water use, job creation, and the effects of large-scale data centers on surrounding communities.

The decision follows Kotek’s earlier move to halt the planned sale of about 32 acres at the Mill Creek Corporate Center in Salem for a proposed data center.

Oregon currently does not have authority to impose a statewide moratorium on data-center development, but the governor said the state can immediately control how its own property is used.

The move is also part of a broader effort to make large technology companies bear more of the costs associated with their electricity demand.

Kotek signed the Protecting Oregonians With Energy Responsibility (POWER) Act in 2025, which has already produced a 29% increase in electricity rates for data-center corporations and rate decreases for other Portland General Electric customers.

Meanwhile, an Oregon Data Center Advisory Committee is developing recommendations on the industry’s growth, with proposals expected to inform legislation for the 2027 session.