A new push in Salem could slow the pace of Oregon's data center buildout.
Several Democratic lawmakers and candidates are calling for a three-year pause on new data center projects, saying the large server facilities are putting too much strain on water, electricity, farmland, and local communities.
What's happening?
During the 2027 legislative session, four Oregon Democrats — Sens. Jeff Golden and Courtney Neron Misslin and Reps. Lesly Muñoz and Farrah Chaichi — intend to pursue a three-year moratorium on new data centers, Oregon Capital Chronicle reported.
The proposal is also backed by Tammy Carpenter, a Democrat running to represent Beaverton in the Oregon House, and Oregon Senate candidate Myrna Muñoz of Hillsboro. Both have made opposition to data center expansion in Washington County a central part of their campaigns.
The latest effort comes as pushback against data centers spreads across Oregon. Lawmakers approved a one-year suspension of a commonly used tax-break program that had saved data center companies hundreds of millions of dollars.
Hillsboro leaders have also put new approvals on hold for 120 days, and Gov. Tina Kotek intervened to stop a proposed state land sale connected to a Salem project, the Chronicle reported.
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Oregon has drawn major data center development because it has no sales tax, offers generous property tax incentives, and has relatively inexpensive electricity.
Why does it matter?
Data centers power cloud computing, artificial intelligence, and streaming services, but operating them requires enormous amounts of energy and water.
In Oregon, critics say the industry's rapid growth is forcing difficult questions about who benefits from these developments — and who absorbs the costs.
Major concerns include farmland loss, higher electricity demand, and whether nearby communities are getting enough in return for substantial tax breaks.
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Another key flashpoint is transparency, especially in Washington County, where Carpenter is among the plaintiffs suing county and Hillsboro officials over a series of tax-break approvals for data center developments.
The fight over data centers extends well beyond Oregon. The National Conference of State Legislatures said 15 states have proposed data center moratoriums.
Of those efforts, only one has been enacted so far: a one-year moratorium in New York that applies to new data centers drawing 20 or more megawatts of electricity.
A separate Heatmap analysis, as the Chronicle reported, found more than 500 local policies limiting or banning data centers, with 40% enacted since June 1.
What's being done?
State officials are already studying how to better oversee the industry's expansion. Kotek created a data center advisory committee that has been meeting monthly to examine the sector's impacts and prepare policy recommendations.
The committee expects to send lawmakers a draft report by mid-September, and its final public meeting is scheduled for Sept. 23.
Backers of the proposed three-year moratorium argue that the pause would give lawmakers more time to evaluate water use, electricity demand, land-use conflicts, and tax policy before more large facilities are approved.
Support is also coming from advocacy and grassroots groups including the Oregon Working Families Party, the Democratic Socialists of America, conservation organizations, and farm owners.
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