As power-hungry data centers continue to pop up across the state, Oregon will begin creating policies addressing the expansion and potential impacts they have, through a newly appointed advisory committee.
On Tuesday, Gov. Tina Kotek announced the creation of the Data Center Advisory Committee. The seven-member committee will be tasked with developing policy recommendations for the expansion and economic development of data centers and other large-load industrial users that align with Kotek’s “Prosperity Roadmap” that aims to boost the state’s economic growth.
FILE - One of Google's data center campuses near the Columbia River in December 2022.
Sheraz Sadiq / OPB
The committee will also develop policies that aim to preserve affordability for ratepayers, protect state forests and farmlands while also helping local economies thrive.
“Oregonians have made their concerns about rising utility bills clear. As our state faces rapid growth of data facilities, we must have frank conversations about the challenges and opportunities ahead,” Kotek said in a statement. “I expect the Data Center Advisory Committee to help ensure economic growth while protecting affordable power and Oregon’s critical water resources.”
Trillion and multi-billion dollar companies like Google, Amazon and Facebook’s parent Meta are among the companies that own the 121 data centers currently in Oregon. Most are located near Hillsboro outside of the Portland metro area and eastern Oregon in Boardman and Hermiston.
Related: As Google’s water demands grow, The Dalles aims to pull more from Mount Hood forest
The data center industry is booming across the nation, fueled by the rapidly growing artificial intelligence industry. That means there is a need for more electricity to power that technology, and more water to keep energy-hungry data centers cool.
But that power is limited in Oregon, where the power grid is reaching capacity, especially in moments during extreme weather events. The state has struggled to add new energy onto the grid, as siting and permitting issues have caused massive yearslong delays for some projects to get online.
High energy usage also means higher utility rates, which has left some ratepayers to choose between paying their bills and purchasing other essential items like food or medicine.
According to nonprofit advocacy group Oregon Citizens’ Utility Board, large industrial users, like data centers, that have connected to Portland General Electric’s system pay about 8 cents per kilowatt hour, or kWH, which is the unit of energy used when 1,000 watts of power is used in an hour. Residential customers in the same PGE system pay close to 20 cents per kilowatt hour.
Last year, lawmakers passed the POWER Act, short for “Protecting Oregonians With Energy Responsibility,” which creates a new classification for large energy users like data centers and aims to require them to pay their fair share of electricity use. But efforts to sidestep this law may be underway.
Related: Oregon Legislature passes ‘POWER Act,’ targeting industrial energy users like data centers
The governor has asked the committee, co-chaired by Northwest Power and Conservation Council’s Margaret Hoffmann and energy and climate policy professional Michael Jung, to deliver a report no later than October.
“The challenges we currently face are complex,” Hoffmann said. “I look forward to working with my fellow committee members to understand how we can co-create a vision for Oregon that supports healthy economic development, affordable energy, natural resource abundance, and a future in which all Oregonians can thrive.”
The committee plans to develop clear siting decisions that will look into where data centers make the most sense and how they can support impacted communities, whether that means by creating jobs or by entering into a community benefits agreement.
The goal of the committee is to also understand how the development of data centers can help Oregon achieve its greenhouse gas reduction goals, which include adding more renewable energy on the grid.
The committee plans to convene its first meeting in early 2026, with at least one public meeting per month for at least six months.
