Gov. Tina Kotek told an anti-data center rally in Salem on Tuesday, Sept. 8, that she supports a statewide moratorium on new data centers.

The announcement marks a sharp turn for Kotek, who had previously backed local moratoriums but had not endorsed a statewide ban. It lands as Hillsboro, home to 436 acres of data centers and $84 million in local property tax breaks for the industry this year, works through its own code overhaul.

"I support a moratorium until we make sure that any data center development is done on our terms," Kotek said at the Capitol rally, according to OregonLive.

Kotek also ordered state agencies to immediately halt all unapproved requests for easements, leases, land-use permits and sales of state-owned property for data center projects. The pause runs until July 1, 2027, or until the governor's office or the Legislature acts, according to the Oregon Capital Chronicle. The order was issued via a letter to agency heads signed by Kotek chief of staff Emerald Bogue, Willamette Week reported.

Kotek acknowledged the state lacks authority to impose a statewide moratorium on private land. She called on the Oregon Legislature to act in its 2027 session.

Agency heads must submit a status report on any data-center-related state property transactions by Sept. 14. How many proposals the order affects is not yet clear.

What it means for Hillsboro

Hillsboro City Council enacted its own 120-day moratorium on new data center and battery energy storage development on July 27 at a special meeting called with one day's notice. That moratorium expires Nov. 24 and could be extended for six additional months.

The city's Planning Commission held a public hearing on a draft code amendment Aug. 26, closed the hearing and requested additional options from staff. The commission is scheduled to resume deliberation Wednesday, Sept. 9, at 6 p.m. at Hillsboro City Hall. The matter is listed as Community Development Code Amendment-004-26.

After the commission makes its recommendation, City Council has a first reading scheduled for Sept. 15 and a second reading Oct. 6.

Hillsboro's data centers host computers for Adobe, LinkedIn, Meta, TikTok and X, with 50 more acres under construction, according to OregonLive reporting from July 27. Statewide, data centers are expected to receive at least $450 million in property tax breaks this year, a figure the Oregon Legislative Revenue Office called "pretty close" to accurate, the Oregon Capital Chronicle reported.

Political backdrop

The data center issue has become central to the governor's race. Kotek's Republican opponent, state Sen. Christine Drazan of Canby, opposes broad moratoriums but has said each community should decide for itself, according to OregonLive.

The issue already cost state Sen. Janeen Sollman, a Hillsboro Democrat, her legislative seat in the May 2026 primary, Willamette Week reported.

A DHM Research poll this summer found two-thirds of Oregon voters support a moratorium on new data centers. Three-quarters want a halt to tax breaks for the industry.

Kotek's Data Center Advisory Committee, originally expected to deliver a draft report by mid-September, will instead provide a preliminary document this week and send final recommendations to the governor by the end of the year.

The Planning Commission's Wednesday meeting is also available on Zoom.