We Need to Talk About Data Centers

If you've done any traveling in Oregon, you're no stranger to the gorgeous landscapes our state has to offer - the lush, rolling hills of the Willamette Valley, the Tolkienesque cliffslides of the Columbia River Gorge, the high-desert drama of Central Oregon.

But if you've hit the road in the past few years, you might have noticed some new additions to the vistas around you: sprawling, nondescript buildings in the distance, like massive windowless office complexes. If this describes a familiar sight, then there's a good chance you've seen a large data center.

Data centers are becoming a more prominent feature of Oregon's landscape. By some estimates, Oregon's data center industry is now third in the nation . Driven by the explosive demand for Artificial Intelligence (AI), cloud computing, and other data-hungry digital services, tech companies are racing to build the infrastructure needed to house, store, and process an unprecedentedly vast amount of information.

Data centers aren't all bad. Some bring meaningful economic development opportunities to local communities and make technological advances possible. But they also come at a high cost to our environment - especially when built at a scale that outpaces the regulations and safeguards needed to protect our communities and natural resources.

As we grapple with the new questions and challenges that data centers pose for Oregon, one thing is clear: We need to be talking about it, and we need to make sure our people and environment aren't left to foot the bill - now and in the future.

Note: No AI was used to write this blog, or any other content you read from OEC!

What Are Data Centers?

Every time you stream your favorite show, save a cute pet pic to the cloud, or ask ChatGPT to write an email for you, there's a good chance a data center is making it happen.

When it boils down to it, data centers are fairly simple: They're the physical infrastructure built to house information technology. Mostly, they're home to computer servers - essentially the "brain" behind the internet that processes, stores, and transmits data. Data centers have existed for decades, but have evolved from simple server rooms that could safely live on a single office building floor to the sometimes million-plus square foot complexes we see today.

Oregon has been an attractive state for data center developers for decades. We're home to abundant land, a cool climate to save on cooling costs (more on that below), ample fiber optic networks to tap into, and no sales tax among other tax incentives ( in 2026, Oregon returned approximately $450 million in property tax breaks to data centers ). Since Google opened its first hyperscale data center in The Dalles back in 2006, the market has continued to boom in Oregon, especially in the Eastern part of the state. Today, our state is home to 115 data centers in operation, with another 27 in development.

And the demand for new data center development isn't expected to wane anytime soon - in fact, quite the opposite. AI is exploding in popularity, and AI systems require enormous computational power to operate - so companies with skin in the game (think Amazon, Google, Apple, and the like) are racing to invest in the infrastructure necessary to power it. In the eyes of the investors, Oregon is prime real estate.

What's at Risk?

We know data centers are rapidly expanding in Oregon - but what exactly is at stake?

To start, there's electricity demand. Large, hyperscale data centers require enormous amounts of power - in some cases the same amount it takes to power up to 50,000 homes. Already, it's taking a massive toll on Oregon's electric grid; we've seen up to 500% load growth in some regions of the state . Without the infrastructure needed to meet demand, the presence of data centers alone could prevent our state from achieving its emissions reductions goals.

Next, there's water. Anything that requires so much energy to run will inevitably get hot - which means something needs to cool it off. Data center developers invariably turn to water to do so. Depending on the specific technology used and local conditions, a single facility can go through millions of gallons of water in a single day. With Oregon communities already facing increasing threats from drought, shrinking snowpack, and increasing competition for water resources, that raises serious questions about long-term sustainability.

Finally, there are concerns around how the rapid development of data centers can pressure communities and ecosystems. New industrial facilities can alter landscapes, affect wildlife habitat, and strain public infrastructure. These impacts might not be as obvious at first glance, and may take longer to rear their heads, but can lead to significant challenges down the line.

There's a lot to lose when it comes to data centers' impact on Oregon's environment. It's crucial that we incorporate transparency, accountability, and environmental safeguards into the regulations around their development.

Where Do We Go From Here?

Data centers come with huge potential for technological progress, but also huge risks. To address them effectively, our state leaders must be actively planning for the future - not just reacting to it.

OEC has been actively involved in Governor Tina Kotek's Oregon Data Centers Advisory Committee - convened last year to develop a regulatory framework for how data centers are managed statewide. Two OEC board members, Michael Jung and Jean Wilson, are Committee members, and OEC staff have been providing regular testimony to this Committee. Visit the Committee's website for information on upcoming hearings and opportunities for you to make your voice heard. Check out OEC's public toolkit to inform your feedback for the Committee.

We also know we can make an impact by enacting policies during Oregon's legislative session. Already, we've seen the POWER Act - which OEC helped pass in 2025 - protect consumers from data center-caused rate increases in Oregon . OEC will continue pursuing policies that protect our communities and environments from the impacts of data centers as we forge ahead to 2027 and beyond.

Issues as complex and challenging as data centers require more voices, not less. For opportunities to get involved, be sure to sign up for our Grassroots Action mailing list . We'll let you know when you're needed for public testimony, writing your lawmaker, or joining us on the ground to protect our state from the environmental impacts of data centers.