Oregon Gov. Tina Kotek has asked the state’s environmental regulator to stop processing and issuing air and water discharge permits for new or expanded data centers until July 1, 2027. She made the request in an October 9 letter to Leah Feldon, director of the Oregon Department of Environmental Quality, asking her to use the agency’s existing administrative authority and discretion.
The letter covers federal National Pollutant Discharge Elimination System permits, state Water Pollution Control Facility permits, Air Contaminant Discharge permits and Title V air quality permits connected to building or operating new data centers. It also asks the agency to stop processing applications from cities and counties seeking to renew or modify wastewater treatment permits to accept discharge from data centers.
Oregon Rural Action, a La Grande nonprofit that has called for a three-year statewide moratorium, obtained the letter and circulated it Tuesday.
Kotek wrote that the “time limited pause” would let her evaluate recommendations from her Data Center Advisory Committee and leave room for policy or regulatory changes in the 2027 legislative session. The seven-member committee held seven fact-finding meetings over nine months and released a 20-page report of preliminary learnings and questions in mid-September.
The permit directive extends an order Kotek issued in September pausing land transactions and permits for new data center projects on state-owned property, also through July 1, 2027. She has said she lacks the authority to impose a statewide moratorium without legislation.
Amazon, which operates more than a dozen hyperscale data centers in Morrow and Umatilla counties, objected. “This directive was issued abruptly, without meaningful stakeholder engagement,” said Shannon Kellogg, vice president of public policy for the Americas at Amazon Web Services. Amazon spokesperson Adrienne Talbot said the pause would “eliminate thousands of construction jobs, hundreds of onsite operational jobs” and halt billions of dollars in planned investment.
Oregon Rural Action said the pause could affect a proposed Amazon hyperscale facility in Boardman whose air permit is under review by the agency. Dozens of residents have asked for an in-person hearing on that permit, and 700 people have signed a petition calling for one. Kaleb Lay, the group’s director of policy and research, said the pause should give legislators time to pass laws on data centers’ water and electricity use, transparency and nondisclosure agreements.
Data centers have become an issue in the governor’s race. Kotek and her Republican opponent, state Sen. Christine Drazan, both support a moratorium, and Drazan has criticized Kotek’s earlier support for data center tax breaks. Kotek did not announce the permit directive before the candidates’ final debate Tuesday night.
Oregon ranks among the top 10 US data center markets, according to Pew Research Center. In Pennsylvania, Gov. Josh Shapiro turned the state’s voluntary data center standards into a mandatory condition for new projects. Nationally, local opposition blocked or delayed at least 45 data center projects between April and June, according to Data Center Watch.
Public comments on the advisory committee’s report are due October 24. Kotek is expected to propose data center policy when the Legislature convenes in January.
Sources: Office of the Governor, OPB, Oregon Capital Chronicle
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By the Control Plane Editorial Team