Gov. Tina Kotek directed the Oregon Department of Environmental Quality to pause approvals of state and federal air and water pollution permits for data center projects until July 1, 2027. The order, issued in a letter to DEQ Director Leah Feldon, follows a separate pause Kotek recently ordered on data center development on state land and in state buildings. Oregon Rural Action, a La Grande-based nonprofit, said the permit pause could affect a proposed Amazon hyperscale facility in Boardman, where an air pollution permit is currently under review. Kotek cited upcoming recommendations from her seven-member Data Advisory Committee and potential policy reforms in the 2027 legislative session as reasons for the pause.
Oregon ranks among the top 10 U.S. data center markets and has drawn major facilities for over 20 years due to its lack of sales tax, moderate climate, cheap electricity, and property tax incentives. Shannon Kellogg, vice president of Amazon Web Services, said the pause would eliminate thousands of construction jobs, halt billions of dollars in planned investment, and affect revenue for Oregon communities and small businesses. The action sets a precedent for state-level environmental permitting as a tool to slow data center expansion while legislative solutions are developed.
A sitting governor issuing a direct executive order to halt environmental permitting for data center construction or expansion is a significant regulatory action with immediate statewide effect. This is a novel executive-branch intervention not yet covered in the already-published list.