Oregon Governor Tina Kotek asked the state environmental regulator to pause permits, creating a de facto data center moratorium. It follows an earlier ban on data center projects on state land.

Oregon Governor Tina Kotek has ordered the state's environmental regulators to temporarily stop issuing pollution permits to data centers, effectively pausing data center development in the Beaver State.

Kotek has directed Oregon Department of Environmental Quality director Leah Feldon to pause all air and water pollution permits for new or expanding data centers until July 2027. In addition to air quality permits, the requested pause covers applications from municipalities seeking to renew or modify wastewater treatment plant permits to accommodate wastewater discharge from data centers.

"I am asking you to exercise your existing administrative authority and discretion to pause processing and issuance of air or water discharge permit applications until July 1, 2027, that involve new or expanded data center facilities within Oregon," Kotek said. "This time-limited pause will provide an opportunity for me to evaluate and digest recommendations forthcoming from the [Data Center] Advisory Committee, and to provide space for policy and/or regulatory reforms that may be considered in the upcoming 2027 session of the Legislature with my support."

Kotek and the department have yet to comment publicly on the requested pause. DCD has reached out to the Oregon Department of Environmental Quality for comment.

The nonprofit Food and Water Watch called the move a "massive victory" that would "give communities breathing room from more data center development."

Food & Water Watch Oregon organizing manager Lilli DiPaola said: "This is a monumental moment for the Oregonians who have made it clear that we don't want water-intensive data centers that will only raise our bills and make it harder to reach our climate goals. We urge this to be just the first step towards regulating the aggressive Big Tech industry already harming Oregonians."

The organization said Oregon still needs a three-year moratorium to give the state enough time to "determine the full impact on Oregonians and the necessary protections."

Kotek had already directed state agencies to pause land transactions for data center projects. She issued that order last month, pausing such deals until July 2027 to enable a statewide evaluation of the long-term impacts of large-scale data center projects.

In August, Kotek blocked the sale of 32 acres at the Mill Creek Corporate Center in southeast Salem for a proposed data center project by Verrus.

Some Oregon cities have adopted temporary moratoriums on data center projects. Hillsboro put a 120-day moratorium in place at the end of July 2026.

In June 2025, the Oregon House of Representatives passed a bill to ensure that data centers and cryptocurrency operations cover a fair share of the costs associated with new power plants and transmission lines.

Oregon is one of the larger data center markets in the US, with a number of operators running facilities around the Hillsboro area of Portland. Amazon also has a sizeable footprint in the state.

"This directive was issued abruptly, without meaningful stakeholder engagement of the workers, businesses, and municipalities it will affect," Shannon Kellogg, vice president of Amazon Web Services Public Policy for the Americas, told KLCC. "Amazon has been a committed partner in Oregon for over 15 years, and we will continue to advocate for policies that protect communities and support responsible growth."

"This pause is badly needed, but it's not a long-term solution," said Kaleb Lay, Oregon Rural Action director of policy and research. "It's not enough to just pause DEQ permits without changing anything. This buys us time, and the Legislature needs to use that time to pass the laws that will stop the pollution, end the secrecy, protect our farmland, and hold these corporations accountable."