Oregon Bans New Data Centers on State-Owned Land
The September 2026 executive order stops all new permits and pauses active fiber-optic projects on public property.
Updated on Oct. 27, 2026 in Data Centers
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Governor Tina Kotek issued an executive order in September 2026 prohibiting the construction of new data centers on state-owned land. Consequently, state agencies have suspended the approval of all leases, easements, and right-of-way permits for such projects.
Why it matters
The order halts the expansion of digital infrastructure on public property across Oregon, forcing telecommunications firms and data center operators to reconsider their footprint near state-managed highways.
The directive covers all state-owned land, representing a total freeze on new site acquisition for data center infrastructure within these boundaries. The policy effectively terminates the processing of right-of-way permits that previously enabled fiber-optic cable deployment on state highways.
The players
Tina Kotek
Governor of Oregon who issued the executive order restricting data center development on state-owned lands.
The details
The executive order mandates that state agencies cease the issuance of leases and land easements for data center facilities. This action creates a structural barrier for developers relying on state properties, as these entities require right-of-way permits—legal authorizations to access or use property for utilities—to install critical network hardware. By withholding these permits, the state has effectively halted the physical expansion of data center nodes on all managed public assets.
Timeline
September 2026: Governor Kotek issued the executive order.
The Tech Race
This policy places a unique regulatory constraint on Oregon's digital infrastructure growth, distinguishing the state from regions actively courting large-scale data center investment. It sets a new precedent for how public lands are balanced against the massive physical requirements of modern cloud and AI facilities.
Infrastructure providers must now pivot to private land for all upcoming expansion projects in Oregon. Businesses relying on future fiber-optic connectivity should prepare for potential delays as telecommunications firms pause existing cable network projects along state highways.
The takeaway
The Oregon executive order signifies a tightening of state control over the physical footprint of digital infrastructure. Stakeholders should monitor for any secondary policy shifts that may clarify the duration of these permit pauses or provide pathways for future state land usage.
Further reading
For broader trends in infrastructure deployment, visit the Data Centers section.
Source note: This article includes information reported by Columbia Gorge News.
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Should the state limit private infrastructure projects on public land to prioritize conservation?
