After Oregon governor bans datacenters across the state over environmental permits; City council declares ‘state of emergency’; warns residents: This will disrupt …
A city in Oregon has declared a state of emergency after the governor’s restrictions on new data centre projects threatened about $6 million in expected revenue. The emergency declaration follows Oregon Governor Tina Kotek’s decision to suspend new environmental permits for data centres until July 2027. The restrictions could put more than $5 billion in planned private investment at risk, according to the city’s estimates. Officials also warned that at least 1,000 construction jobs, along with hundreds of permanent jobs and other employment opportunities, could be affected. In October, Kotek directed Oregon’s environmental authorities to suspend new pollution permits for data centres, effectively restricting new development until July 2027.
However, the city said it is not facing an immediate budget crisis. They threaten the broader economic and financial well-being of the Umatilla community,” said Dave Stockdale, Umatilla city manager. Umatilla officials warned that the move could delay public infrastructure projects, affect jobs and put billions of dollars in planned private investment at risk. Umatilla officials say the restrictions could affect planned developments in the city, where data centres have become an important source of expected future revenue. Umatilla’s city council approved the emergency declaration over concerns that the state’s restrictions could disrupt its financial plans. The city had included expected data centre revenue in future budgets, with some of the money intended for infrastructure improvements. The projects at risk include a proposed police station and several million dollars in upgrades to the city’s water infrastructure. City Manager Dave Stockdale warned that delays in receiving the expected payments could force officials to reconsider the timelines for these projects. The money has not yet been received or spent, and existing public services and financial obligations remain unaffected. Umatilla currently has four operational data centres, while another facility is under construction and two more developments are awaiting completion. Companies operating in the area include Amazon Web Services and Sabey Data Centers. Some projects awaiting regulatory approval could face delays of more than two years. Developers may also abandon their plans or move their investments to other locations, the city warned. “These consequences extend far beyond the interests of individual businesses. The governor had also halted transactions involving state-owned land intended for data centre projects while officials reviewed their potential long-term effects.
The move followed an August decision to block the sale of 32 acres at Salem’s Mill Creek Corporate Center for a proposed Verrus development. Hillsboro, for example, imposed a 120-day pause on new data centre developments in July 2026. Umatilla’s emergency resolution calls for the situation to be reviewed within 90 days.
Other local authorities have introduced restrictions as well.
Stockdale said the declaration was intended to protect future investment and infrastructure plans, rather than respond to an immediate shortage of operating funds. It also authorises an assessment of the possible financial and employment losses and urges the governor to reconsider the restrictions. You use AI every day. Now get your AI Quotient. Take the AIQ test.