Oregon · Data center compliance

Oregon data center compliance guide: federal, state and local requirements

Oregon already has a state data center law: the 2025 POWER Act created a separate utility rate class for data centers of 20 MW or more, and the PUC approved PGE’s first tariff under it in May 2026. In 2026 the state also paused enterprise zone tax breaks for new or expanding data centers, and Gov. Kotek paused DEQ air and water permits and state land deals for them until July 1, 2027.

Updated

Serving Hillsboro (Washington County), Boardman, Hermiston & Umatilla, The Dalles (Wasco County), Prineville / Bend, Hood River and Portland, Salem & Clackamas in Oregon.

At a glance

Oregon data center rules at a glance

  • 20 MW+

    Data centers placed in a separate utility rate class under the POWER Act (HB 3546)

  • 1¢/kWh

    Surcharge above 100 MW under PGE Schedule 96

  • 40×

    Growth in permitted backup generation at Oregon data centers, 2012–2025, to 5,881 MW

  • July 1, 2027

    End of the governor’s pause on DEQ air and water permits for new or expanding data centers

Key takeaways for Oregon data center projects

  • Oregon data centers answer to Oregon DEQ (or LRAPA in Lane County), the Public Utility Commission, the Water Resources Dept., DLCD and LUBA, the Dept. of State Lands, Business Oregon and county assessors, Oregon OSHA and the State Fire Marshal.
  • Under the POWER Act, data centers of 20 MW or more sign contracts of at least 10 years and pay full distribution costs.
  • HB 4084 bars new data center enterprise zone authorizations until 90 days after the 2027 session.
  • DEQ counts 39 permitted campuses, concentrated in Hillsboro, Boardman–Hermiston–Umatilla, Central Oregon and The Dalles.
  • Gov. Kotek has paused DEQ air and water permits for new or expanding data centers, and data center deals on state land, until July 1, 2027.
Recent and pending laws

What’s changed for Oregon data centers

The rules moving fastest right now. Each entry shows its status and the dates to watch.

  1. Date: Oct. 9, 2026

    DEQ data center permit pause

    Governor’s directive halts air and water permits for new or expanded data centers until July 1, 2027

    Status: In effect

  2. Date: Sept. 8, 2026

    State land pause

    Halts leases, easements, sales and permits for data centers on state land until July 1, 2027

    Status: In effect

  3. Date: Dec. 2026

    Data Center Advisory Committee report

    Final recommendations for 2027; preliminary report released Sept. 10

    Status: Expected

  4. Date: July 27, 2026

    Hillsboro moratorium

    120-day pause on new data centers and battery storage

    Status: Ends Nov. 24

  5. Date: June 5, 2026

    HB 4084

    Bars new data center enterprise zone authorizations until after 2027 session

    Status: Law

  6. Date: May 7, 2026

    PGE Schedule 96

    Long contracts, full distribution costs, exit fees, 1¢/kWh over 100 MW

    Status: In effect

  7. Date: 2025

    HB 3546 (POWER Act)

    Separate rate class for 20 MW+; 10-year minimum contracts

    Status: Law

  8. Date: 2025

    DEQ streamlined permit

    Faster air permits for generators with SCR, DPF and DOC

    Status: Available

Who regulates what

Four layers of oversight on every Oregon project

A compliant Oregon data center has to clear federal rules, state agency permits, local approvals and utility requirements at the same time.

  • Federal

    • U.S. EPA (air, water, SPCC, EPCRA)
    • U.S. Army Corps of Engineers
    • OSHA
    • FAA
    • FERC / NERC
  • State

    • Oregon DEQ (and LRAPA in Lane County)
    • Oregon Public Utility Commission (PUC)
    • Oregon Water Resources Dept. (OWRD)
    • DLCD / Land Use Board of Appeals
    • Dept. of State Lands (DSL)
    • Business Oregon / county assessors
    • Oregon OSHA and State Fire Marshal
  • Local

    • Cities, counties and port districts
  • Utility & grid

    • PGE
    • PacifiCorp (Pacific Power)
    • PUDs (e.g., Northern Wasco PUD)
    • Co-ops (e.g., Umatilla Electric)
Lifecycle

Oregon requirements from site selection to decommissioning

  1. 01

    Site selection

    Confirm urban growth boundary and zoning status under Oregon's statewide land use system, any local moratorium, the utility (PGE, PacifiCorp or a consumer-owned utility) and water supply.

  2. 02

    Permitting & construction

    DEQ air permits for generators (synthetic minor, or the streamlined path with SCR, DPF and DOC controls), DEQ 1200-C construction stormwater, DSL wetland permits and local building and fire permits. DEQ air and water permits for new or expanding data centers are paused until July 1, 2027.

  3. 03

    Operations

    POWER Act contract terms and minimum payments, air permit limits and reporting, water rights compliance and enterprise zone obligations for existing authorizations.

  4. 04

    Decommissioning

    Close fuel tanks under DEQ rules, terminate air permits, manage batteries and electronics properly and settle utility exit fees under the tariff.

On your jobsite

What this means on your jobsite

  1. Site selection

    In Oregon, land use rules and the state’s data center pauses can stop a project before the ground does. Confirm both, then test the site.

    • Land use and local pauses

      Oregon’s statewide land use system decides where a data center can go, and cities are adding their own limits: Hillsboro has a 120-day moratorium on new data centers through Nov. 24, 2026, and is writing a cap on data center land.

      You'll need: zoning and urban growth boundary confirmation for the parcel, plus any local moratorium dates

    • State land is off the table

      Gov. Kotek has paused leases, easements, sales and land-use permits for data centers on state-owned land until July 1, 2027.

      You'll need: title and ownership checks that rule out state land or a state easement

    • Soils and seismic ground conditions

      DOGAMI maps liquefaction susceptibility and soil amplification across the Portland metro counties, including Washington County, and fill and landslide ground need site-specific evaluation.

      You'll need: geotechnical data and early testing to confirm the foundation and seismic design assumptions

    • Water supply

      With some exceptions, using surface or groundwater in Oregon takes a permit or license from the Oregon Water Resources Department, so cooling water usually comes from a water right or a city supply agreement.

      You'll need: the water right or municipal supply agreement that covers your cooling demand

    • Environmental history

      Lenders and buyers will expect a Phase I environmental site assessment before acquisition, and a Phase II if it flags concerns.

      You'll need: an ASTM-based Phase I in the diligence file

  2. Permitting & construction

    DEQ has paused air and water permits for new or expanding data centers until July 1, 2027. Use the wait to get your testing and inspection records ready, so you can start building as soon as permits resume.

    • Special inspections

      The 2025 Oregon Structural Specialty Code, based on the 2024 IBC, requires third-party special inspections of structural concrete, steel, welding and fireproofing.

      You'll need: an approved special inspection agency and daily reports the building official will accept

    • Welds and structural connections

      Structural steel, pipe supports and generator skids need weld inspection and nondestructive testing before they’re covered up.

    • Construction stormwater

      Disturbing an acre or more needs DEQ 1200-C coverage, with an erosion and sediment control plan filed at least 30 days before work starts, and site inspections must be done by a credentialed inspector.

      You'll need: documented inspections throughout the build

    • Generators and fuel

      Backup generators need a DEQ Air Contaminant Discharge Permit, which is currently paused for new or expanding data centers. DEQ’s streamlined Tier 4 path skips site-specific modeling for Tier 2 engines fitted with SCR and particulate filter controls.

      You'll need: generator specifications, emission control data and a testing and maintenance plan ready to file

    • Commissioning before energization

      Under PGE’s Schedule 96, large loads pay minimum demand charges on 90% of contracted capacity, so delays in proving out electrical and backup systems cost you money.

      You'll need: commissioning records and integrated systems test results showing the systems perform as designed

  3. Operations

    Once you’re live, compliance becomes a matter of records: who tested what, when, and against which standard.

    • Electrical maintenance

      NFPA 70B is now an enforceable standard with required maintenance intervals and condition assessments for electrical equipment. Insurers and AHJs increasingly ask for the records.

    • Backup power readiness

      NFPA 110 calls for regular generator exercise and load testing, and your DEQ air permit limits generator emissions and run time, so every test needs to be planned and logged.

      You'll need: generator run logs that match your permit’s testing and maintenance limits

    • Cooling and mechanical reliability

      Pumps, chillers and CRAH fans fail gradually, and the warning signs show up in vibration data first.

    • Monitoring you can trust

      Environmental and power sensors drive alarms, PUE and the energy and water figures regulators and your utility increasingly ask for. Uncalibrated sensors produce numbers you can’t defend.

  4. Decommissioning

    The fastest way to lose value at end of life is a site with undocumented contamination or orphaned tanks.

    • Tank closure

      Regulated underground fuel tanks are decommissioned by a DEQ-licensed service provider, with 30 days’ notice to the DEQ regional office and a site assessment report within 30 days of completion.

      You'll need: inspection and sampling before the tanks come out

    • Batteries and hazardous materials

      UPS and battery energy storage systems need proper removal, handling and recycling records, as do any EPCRA-reportable chemicals on site.

    • Permits and utility exit

      Shutting down means closing out your DEQ air permit and settling any early-exit charges, which Schedule 96 bases on remaining demand obligations and unspent distribution investment.

      You'll need: the utility contract terms and a permit termination request

    • Exit assessment

      A post-operations environmental assessment protects the seller and the next owner.

Key local jurisdictions

Where Oregon rules get local

Zoning, noise, water and moratoria vary county by county. Confirm the current ordinance before you file.

  • Hillsboro (Washington County)

    120-day moratorium through Nov. 24, 2026; code changes to cap data center land.

  • Boardman, Hermiston & Umatilla

    Rural enterprise zones and Port of Morrow sites; DEQ permit pause may hold up Amazon’s Boardman air permit.

  • The Dalles (Wasco County)

    Google campus; city water agreements under scrutiny.

  • Prineville / Bend

    Meta and Apple campuses; Central Oregon water and land limits.

  • Hood River

    Data center moratorium through at least the end of 2026.

  • Portland, Salem & Clackamas

    Writing data center rules before projects arrive.

How ATS + SGS help

One testing, inspection and certification partner for the whole build

  • Construction & code compliance

    Materials testing, special inspections and nondestructive testing so your Oregon build passes inspection the first time.

    • Code compliance
    • NDT inspection
  • Electrical, fire & commissioning

    Electrical and fire protection testing, generator and UPS verification, and commissioning support before go-live.

    • Fire & electrical
    • Commissioning
  • Environmental & due diligence

    Environmental compliance support, technical due diligence for investors and insurers, and ESG assurance.

    • Technical due diligence
    • ESG assurance
FAQ

Oregon data center compliance questions

An Oregon data center typically needs a DEQ air permit for its backup generators (often a synthetic minor permit, or DEQ’s streamlined permit for generators with SCR, DPF and DOC controls), 1200-C construction stormwater coverage, land use approval consistent with statewide planning goals, water rights or a municipal supply agreement, and building and fire permits. DEQ has paused air and water permits for new or expanding data centers until July 1, 2027. PGE and Pacific Power serve loads of 20 MW or more under POWER Act tariffs.

This page summarizes Oregon data center requirements as of October 12, 2026 for general information. It is not legal advice. Confirm current requirements with the relevant agency or counsel before filing.

Bring one TIC partner to your next Oregon data center project

Tell us where you're building and what role you play. We'll route you to the right ATS specialist.

Other states

Data center compliance guides by state

Oregon

New data centers are on hold through July 1, 2027: Gov. Kotek paused DEQ air and water permits and state land deals, on top of HB 4084’s tax break freeze and the POWER Act’s 20 MW rate class.