Oregon Paused New Data Center Permits

Governor Tina Kotek issued a directive halting air and water permit processing for data centers until mid-2027.

Updated on Oct. 14, 2026 in Data Centers

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Should Oregon place a moratorium on data center permits to ensure stricter environmental protections?

Governor Tina Kotek ordered the Oregon Department of Environmental Quality to suspend processing air and water permits for new or expanded data centers. The pause will remain in effect through July 1, 2027.

Why it matters

The order allows the state to review recommendations from the Data Center Advisory Committee and evaluate potential regulatory reforms. This pause provides a window to address industry growth before the 2027 legislative session.

The directive covers National Pollution Discharge Elimination System, Water Pollution Control Facility, and Title V air quality permits. It applies to all new construction, expansion projects, and permit renewals for data center operations.

The players

Tina Kotek

Tina Kotek is the Governor of Oregon who issued the directive to pause data center permit processing.

Leah Feldon

Leah Feldon is the Director of the Oregon Department of Environmental Quality tasked with implementing the permit suspension.

Data Center Advisory Committee

The Data Center Advisory Committee is the body providing recommendations to the Governor regarding industry regulation.

The details

Governor Kotek instructed DEQ Director Leah Feldon to utilize administrative authority to stop issuing permits for data center facilities. This suspension encompasses both water and air quality applications across the state of Oregon.

October 9, 2026: Governor Kotek issued the directive letter.
July 1, 2027: The data center permit pause expires.

The Tech Race

This pause reflects a shift in how states manage the intensive utility demands of the modern data center industry. It positions Oregon to potentially redefine its regulatory framework as competition for regional infrastructure resources intensifies.

The pause halts new construction and expansion projects for data center developers operating within the state. This may affect regional utility planning and future facility availability until the regulatory framework is updated in 2027.

The takeaway

The pause grants the state time to recalibrate oversight of facilities that consume significant water and air resources. Residents and stakeholders should monitor the 2027 legislative session for the finalized regulatory reforms.