Just weeks away from a hotly contested election, Tina Kotek, the governor of Oregon, issued a statewide moratorium on environmental permits for new data centers that will last until July 2027.
Supporters say the pause could give communities more time to assess the industry's effects, while opponents warn it could cost jobs and investment.
Here's what to know
According to Jefferson Public Radio, Kotek instructed the Oregon Department of Environmental Quality to stop processing pollution permits for new or expanding data centers, along with local wastewater permit changes tied to those facilities.
Since so-called "hyperscale" data-center projects generally need both air and water approvals to proceed, the pause could sideline most major data center development across Oregon.
The order arrives during a heated political fight over the fast-growing industry. Kotek and her opponent Christine Drazan, a Republican state senator, both currently support a data center moratorium, though they have attacked each other's past records on the issue.
Kotek's latest move expands an earlier moratorium that restricted data center development on state-owned land.
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Amazon, which has over a dozen hyperscale facilities in Morrow and Umatilla counties, blasted the decision.
In a statement, Shannon Kellogg, vice president of Amazon Web Services Public Policy for the Americas, said the directive was "issued abruptly, without meaningful stakeholder engagement of the workers, businesses, and municipalities it will affect," adding that thousands of jobs and billions of dollars in planned investment could now be in jeopardy.
More background
Supporters of the pause say Oregon needs time to catch up with an industry whose rapid growth can place a major strain on local resources. Social justice and environmental groups applauded the move.
"What this pause means is that everything — assuming it is implemented the way we think it will be — data center development will pause until the legislature has a chance to act over the course of the first half of next year," said Kaleb Lay, director of policy and research for Oregon Rural Action, according to JPR.
For communities near large proposed campuses, that could mean more time to weigh wastewater concerns, water consumption, and electricity demand before construction begins or resumes.
Lay said advocates are pushing for new laws on data centers — including limits on water and electricity use and rules on transparency and nondisclosure agreements.
What's being done?
Kotek framed the permit freeze as a temporary measure rather than a permanent shutdown.
"This time limited pause will provide an opportunity for me to evaluate and digest recommendations forthcoming from the Advisory Committee, and to provide space for policy and/or regulatory reforms that may be considered in the upcoming 2027 session of the Legislature with my support," she explained, per JPR.
Oregon's legislative session will begin in January 2027, with lawmakers already expected to consider a broad slate of data center proposals in response to Kotek's previously established Data Center Advisory Committee.
According to the governor, the state government will use the pause to determine what standards should be in place before another wave of large-scale development moves forward.
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