Oregon Pauses State Land Sales For Data Center Projects Through July 2027

Oregon Governor Tina Kotek has ordered state agencies to pause land transactions for new data center projects. The freeze covers unapproved easements, leases, land-use permits, property sales, and other state land agreements for data centers. It will remain in place through July 1, 2027, unless lifted earlier. The pause will allow the state to assess the long-term impact of large-scale data centers, including infrastructure capacity, water use, environmental sustainability, job creation, and effects on local communities.

“Data center corporations are asking communities to absorb enormous demands on our water, energy, infrastructure, and natural resources, and we need to know what that means for Oregonians,” governor Kotek said. “I am taking this action because the state should not be moving forward with new data center projects on public land while we are still working to understand and address those impacts. Oregonians deserve a statewide approach that protects our communities, respects our natural resources, and makes sure state government is acting in the public interest.”

The Oregon Data Center Advisory Committee, formed by Governor Kotek in January, will develop policy recommendations by the end of 2026 to guide future legislation. While Oregon cannot impose a statewide moratorium, it can restrict data center projects on state-owned land. The move follows Kotek’s August decision to block the sale of 32 acres in Salem for a proposed Verrus data center.

Several Oregon cities have also introduced temporary moratoriums, including Hillsboro, which enacted a 120-day pause in July 2026. In June 2025, the Oregon House passed a bill requiring data centers and crypto operations to cover a fair share of new power and transmission costs.