Speaking at a press conference in downtown Portland, the Democratic governor said the state needs a uniform framework governing data center operations, covering water consumption, transparency, energy use and the sources of electricity powering the facilities.

"My call to the Legislature is that they need to, I believe, do a bill around data center oversight and standards in the first 60 days of session," Kotek said. "The sooner we can get that done, the sooner communities around the state will have clarity and we can move forward on this topic. It's really important to get it right, and I think we know how to do it."

The announcement came days after Kotek won reelection and follows a sharp shift in her approach over the past year. She began 2026 calling for a deliberative process, appointing a task force to study the industry and recommend changes. As the fall campaign intensified, she adopted a more assertive posture, ordering a nine-month halt to new state air and water permits for data centers in October to give lawmakers room to act.

Oregon hosts one of the nation's largest data center industries, with 120 sites spread across 2,100 acres from Hillsboro to Hermiston. The sector's growth has been fueled in part by a state tax structure especially favorable to data centers, including breaks worth an estimated $450 million to the industry last year.

Public sentiment has turned against those incentives. Polling by DHM Research last summer found two-thirds of Oregonians support a data center moratorium and three-quarters want the industry's tax breaks eliminated. Critics argue the facilities drive up power rates, contribute to climate change, worsen drought conditions and avoid taxes.

Local governments are moving on their own. Hillsboro has imposed strict new limits that could permanently cap the industry's growth there, while Portland, Clackamas County and Salem are weighing moratoriums. Some state lawmakers have called for a three-year ban on new data centers.

Not every community is on board with a slowdown. The city council in Umatilla, home to large Amazon data centers, declared a state of emergency last month over the governor's permitting halt, with local leaders warning it could cost jobs and future tax revenue.

Kotek's proposal would establish statewide standards rather than leaving regulation to a patchwork of local decisions. The governor's office has not yet released the bill's details, but her remarks signal that water use, disclosure requirements and electricity sourcing will be central to the debate when lawmakers return in January.