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Oregon freezes data center pollution permits through June 2027

Gov. Tina Kotek has directed state environmental regulators to stop approving air and water pollution permits for data center projects until July 1, 2027. The pause could affect a proposed Amazon facility in Boardman as Oregon weighs new rules for the fast-growing industry.

Oregon freezes data center pollution permits through June 2027

Oregon environmental regulators must pause approvals of new air and water pollution permits for data centers and expansions until July 1, 2027, under an order from Gov. Tina Kotek.

Kotek issued the directive Friday in a letter to Oregon Department of Environmental Quality Director Leah Feldon. She said the temporary pause would give her time to consider recommendations from her Data Advisory Committee and allow for possible policy or regulatory changes during the 2027 legislative session.

The order does not impose a statewide ban on data center construction. But it could delay projects that need the permits, including a proposed large-scale Amazon facility in Boardman. An air pollution permit for that project is under review, and Feldon will ultimately decide whether to approve it, according to Oregon Rural Action, a nonprofit that has called for a longer moratorium.

The group says residents have submitted dozens of comments asking the department to hold an in-person hearing on the facility’s air permit, and that 700 people have signed a petition seeking a hearing.

Amazon Web Services Vice President Shannon Kellogg criticized the pause, saying it was issued abruptly. In a statement, he said it would cost thousands of construction jobs, halt planned investment and affect revenue for Oregon communities and small businesses.

Kotek’s seven-member Data Advisory Committee has held seven fact-finding meetings over nine months. In September, it issued a 20-page report of preliminary findings and questions, rather than the cost-benefit analysis it had been tasked with producing. The public can submit comments on the report until 5 p.m. Oct. 24. Kotek is expected to propose a policy on data centers in January, when the Legislature next meets.

The permit directive follows a separate, roughly yearlong pause Kotek ordered on approvals for data centers on state land or in state buildings. Her office said no state agencies are currently considering permits for such projects on state property. Kotek has said she lacks authority to impose a statewide construction moratorium without legislative action.

Oregon is among the country’s leading data center markets. The industry has been drawn to the state by its lack of a sales tax, moderate climate, relatively low electricity costs and property tax incentives. Eastern Oregon hosts the state’s largest facilities, including most of Amazon’s data centers.

The new pause came days before the final gubernatorial debate between Kotek and Republican state Sen. Christine Drazan, who has criticized Kotek’s past support for data center tax breaks. Kotek did not publicly announce the permitting order before the debate.

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