An Oregon legislative committee advanced an amendment this week that would temporarily halt tax breaks for newly built data centers, according to reporting by KGW. The measure, folded into a broader economic incentives bill, would establish a one-year moratorium on property tax incentives for data center projects beginning in 2026.

The proposal arrives amid intensifying debate over the rapidly growing energy footprint of large-scale computing facilities across the region. Data centers operating in Oregon draw heavily from the same transmission systems that serve southwest Washington, including Cowlitz County’s industrial corridor. As Oregon lawmakers weigh the future of these incentives, local utility planners in southwest Washington say cross-border demand remains a factor in long-term grid planning.

Supporters of the pause argue that state and local governments need time to evaluate the true economic and infrastructure impacts of data centers before extending additional tax benefits. Critics of the existing incentive structure have raised concerns about rising electrical demand and the strain placed on shared regional grids that serve both Oregon and southwest Washington communities.

The one-year moratorium will undergo further consideration as the bill moves through the Oregon Legislature. Lawmakers have not yet indicated whether additional amendments or public hearings will be scheduled.