Oregon Gov. Tina Kotek has ordered state regulators to stop processing and issuing air- and water-discharge permits for new or expanded data centers until July 1, 2027, a move that effectively freezes one of the key approvals Amazon needs to build a massive server farm near Boardman. The order, issued in a letter to Department of Environmental Quality Director Leah Feldon, lands as Oregon's data center boom has drawn growing scrutiny over water use, electricity demand and tax breaks.
Kotek's directive came on October 9, and DEQ confirmed this week that it has paused new and renewed air and water quality permits for data centers, including applications that were already pending, according to oregonlive.com. The governor said the pause would give her time to weigh recommendations from a Data Center Advisory Committee and consider policy or regulatory reforms ahead of the 2027 legislative session.
La Grande-based nonprofit Oregon Rural Action shared news of the order in an email Tuesday, and said the pollution-permit freeze could affect a proposed Amazon hyperscale facility in Boardman. Amazon needs an air pollution permit to build that facility, and the permit remains under review, with final approval ultimately up to Feldon's discretion, according to Oregon Capital Chronicle.
Amazon Warns of Lost Jobs and Investment
Local residents have pushed back on the Boardman project for months, submitting dozens of public comments requesting an in-person hearing on its air-quality permit. A petition calling for that hearing has gathered 700 signatures, per the Oregon Capital Chronicle report.
Amazon Web Services Vice President Shannon Kellogg said in a statement that the pause was abrupt and could eliminate thousands of construction jobs, hundreds of onsite operational jobs, and billions of dollars in planned investment, along with revenue for Oregon communities and small businesses. Eastern Oregon is already home to the state's largest data center facilities, including most of Amazon's operations there, according to an ECOnorthwest analysis cited by the same outlet.
Kotek separately ordered a roughly one-year pause on approvals to develop data centers on state land or in state buildings, though her office says no state agencies are currently considering data center permits on state-owned property. The governor has said she lacks the authority to impose a statewide data center moratorium without legislative action, and is expected to propose a policy addressing the concerns in January, when the Legislature next convenes.
A Committee Still Short on Answers
The seven-member Data Center Advisory Committee, tasked with producing a cost-benefit analysis of the industry in Oregon, has held seven fact-finding meetings over nine months and issued a 20-page “preliminary learnings and questions” report in mid-September. The public can submit comments on that report until 5 p.m. on October 24.
Oregon has attracted large server facilities for more than 20 years thanks to its lack of sales tax, moderate climate, relatively cheap electricity and generous property-tax incentives for industrial development, the Oregon Capital Chronicle notes. The state now ranks among the top 10 U.S. data center markets, according to Pew Research cited in that reporting.
The scale of that growth has become a flashpoint. Oregon had 111 operational data centers as of September, with 32 more planned or under construction, and the industry accounted for roughly 23% of statewide electricity sales in 2025, according to OPB. Researchers expect that share to climb to 31% or 32% by 2030. Data centers directly employed 2,630 people statewide as of September, with 2,205 of those jobs in Eastern Oregon, though OPB's report found that information on water use and other community impacts remains inconsistent, incomplete or unavailable in many cases.
Public Opinion and Political Pushback
A DHM Research poll found that two-thirds of Oregon voters support a temporary moratorium on new AI data center construction, and voters opposed issuing new tax breaks for the industry by more than a three-to-one margin, per oregonlive.com's reporting from August. Data center operators were receiving more than $450 million in Oregon incentives this year, with larger tax breaks expected under agreements already signed.
State Sen. Christine Drazan, Kotek's Republican opponent, has criticized the governor for previously supporting data center tax breaks. Kotek has also declined Oregon Capital Chronicle's requests over more than two months to discuss the industry and the issues it has raised, the outlet reported.
Oregon's move echoes action elsewhere. Texas Gov. Greg Abbott directed the Texas Commission on Environmental Quality to halt new data center permits until state agencies complete audits examining electricity use, water use, local impacts, ownership and tax breaks, according to the Texas Tribune. New York Gov. Kathy Hochul ordered a one-year moratorium on new data centers in July, and closer to home, Hillsboro imposed its own 120-day moratorium on data center permits at the end of that month.
This story was originally reported by Alex Baumhardt for Oregon Capital Chronicle and republished by The Portland Tribune.
