Gov. Kotek pauses data center projects on state land until 2027

SALEM, Ore. (KTVZ) -- Gov. Tina Kotek today directed all state agencies to immediately pause unapproved requests for state-owned property for data center projects. The order halts easements, rights-of-way, leases, rentals, land-use permits and sales or transfers of state property through July 1, 2027, unless directed otherwise by statewide action from the Governor's Office or the Legislature.

The directive establishes a pause to allow state officials to complete a coordinated statewide evaluation of large-scale data center development. The assessment will focus on infrastructure capacity, environmental sustainability, water usage, job creation and the long-term effects on surrounding communities.

The pause builds on Gov. Kotek’s earlier decision to halt the planned sale of approximately 32 acres at the Mill Creek Corporate Center in Salem for a proposed data center project. While Oregon currently lacks the authority to enact a statewide moratorium on data center development, the directive reflects actions taken within the state's executive control.

Gov. Kotek emphasized the need to assess resource demands before allowing further development on public property.

“Data center corporations are asking communities to absorb enormous demands on our water, energy, infrastructure and natural resources and we need to know what that means for Oregonians,” Kotek said. “I am taking this action because the state should not be moving forward with new data center projects on public land while we are still working to understand and address those impacts. Oregonians deserve a statewide approach that protects our communities, respects our natural resources and makes sure state government is acting in the public interest.”

The directive follows previous legislative action targeting data center energy consumption. In 2025, Kotek signed the Protecting Oregonians With Energy Responsibility (POWER) Act into law to create accountability for data center electricity usage. The legislation resulted in a 29% electricity rate increase on data center corporations and rate decreases for all other ratepayers served by Portland General Electric.

In January, Kotek convened the Oregon Data Center Advisory Committee to develop comprehensive policy recommendations. The panel was tasked with addressing data center growth while keeping utility costs, infrastructure upgrades and environmental impacts sustainable, particularly for working families and low-income households.

The Oregon Data Center Advisory Committee is scheduled to present its final recommendations to Gov. Kotek by the end of the year. Those findings will be used to inform new legislation that Kotek plans to introduce for the 2027 legislative session.