Oregon Still Needs More Protections Against Data Centers

Over the last year, Oregon has taken big steps toward protecting regular people from the impact of data centers’ energy use and costs. But we still have a long way to go. This year, we need our policymakers to continue to push for solutions that address this new type of business’s high demand for electricity.

Last summer, state legislators passed the POWER Act (HB 3546), which ensures that data centers and cryptocurrency operations pay their fair share for the significant demands they place on Oregon’s electric grid. But this new law cannot be the only protection. We’re still facing risks to our energy grid and our power bills from data centers’ expansive growth.

This summer, Oregonians have an opportunity to encourage strong, smart new policies at the state level. Governor Kotek has pulled together an advisory committee on data centers that will make recommendations ahead of next year’s legislative session. We need to make sure that these policymakers are hearing our concerns and working towards solutions for our energy grid.

Oregon Data Center Advisory Committee

Data centers—and their big energy usage—are a growing issue in Oregon. Over the past decade, our state has become one of the top destinations in the world for big tech companies to build out data centers. And with this big growth comes a lot of challenges that Oregon needs to address.

Read More: Why is Oregon a Hot Spot for Data Centers? (CUB Blog)

Governor Kotek convened the Data Center Advisory Committee to develop recommendations for a comprehensive regulatory framework to strategically pursue economic development opportunities. This committee also seeks to ensure that utility costs, infrastructure investments, and environmental impacts remain sustainable and equitable for all residents, especially low-income and working families.

Going Beyond the Power Act

Oregon has taken a big step forward in addressing Oregonians’ energy affordability with the POWER Act, but we need to keep pushing.

PGE has started to roll out new protections that insulate other customers—like your home—from data centers. Pacific Power has started the process of making its rules for data centers.

Read More: Regulators Direct PGE to Protect Oregonians from Data Centers (CUB Blog)

We can look forward to more protections from the POWER Act as Oregon’s two biggest electric utilities make real the new rules for data centers:

• Data center costs will be charged to data centers, reducing the strain on household energy bills.
• Oregonians are protected from skyrocketing bills from infrastructure that only benefits data centers, slowing the rise of energy costs for our families.
• Utilities have better tools to plan for new energy demand while prioritizing clean energy.

But the POWER Act was never intended to be a silver bullet! We still need policymakers to keep going to protect Oregonians from data centers.

Creating New Policies to Address the Risk of Data Centers

Without new policy intervention, Oregonians are at risk as more data centers come to town. We need to act soon on adding more proactive protections for affordability, health, and safety while we still can.

Data Centers are Straining our Energy Grid

Our energy system was not set up for adding new customers the size of cities, and data centers are straining the grid.

According to The Oregonian, PGE says its data center load increased from 50 average megawatts in the spring of 2020 to more than 300 average megawatts in the second quarter of 2025. That’s equivalent to the power use of about 240,000 homes. This number is going to keep growing.

Adding more data centers and their big energy demand means we need more energy supply for everyone. When PGE adds the equivalent of 240,000 homes over five years, they need to find new sources of energy to serve that demand. And adding new energy resources can be expensive!

On days or times when everyone is using a lot of electricity all at once, data centers’ big energy use could force utilities to purchase energy at a much higher cost than planned from the market, driving up all of our power bills. As we’re seeing more and more extreme weather, these days are happening more often. Climate change means that this risk will continue to grow.

If utilities can’t properly plan for big usage, the impacts can be devastating to everyone. The strain of data centers’ big energy needs could lead to blackouts during extreme heat or cold, putting Oregonians’ health and safety at risk. We need reliable electricity to keep our homes at safe temperatures for our health and to prevent structural issues, like freezing pipes.

Data Centers Should Be Part of the Solution

Data centers should be part of the solution and help us strengthen the energy grid for everyone in Oregon!

Data centers should bring in new energy generation and capacity. This helps utilities avoid building new power plants or buying new resources from expensive markets. This saves us money on our bills and makes the grid more reliable.

Data centers should be more flexible during peak energy times, like extreme weather. For Oregonians, maintaining power at home and in community spaces is a matter of safety. Data centers do not have the same risk to human life and health during extreme weather. This flexibility could include rules for “curtailing,” or shutting off, data centers to avoid energy emergencies. Similar policies are already used in other states.

Data centers should help fund home energy upgrades for low-income families to reduce the overall strain on the energy grid. Solutions for those with the most barriers—such as renters and those in manufactured homes—help both the grid and lower energy bills for those who can least afford them. Funding for programs that help these families is currently very limited or does not exist.

Addressing Data Centers’ Impact Now is Vital

We need to act soon on adding more proactive protections for affordability, health, and safety while we still can.

If we can’t manage data centers’ energy demand, power bills could continue to grow more unaffordable. Without asking more of these customers that are using an outsized amount of electricity, utilities are forced into buying more expensive energy options to keep our lights on. Data centers bringing their own energy resources can help us avoid higher bills.

Without ways to reduce energy needs, data centers will continue to strain the grid and threaten our health and safety with energy emergencies. Unplanned outages, especially during extreme weather, put our homes at risk if our utilities cannot keep up with peak energy demand. Data centers can provide more flexibility with their own energy usage, and help fund household solutions that reduce overall energy demand.

We need new policies now that include data centers positively contributing to our energy grid before we risk the reliability of the electricity Oregonians need to live. Without new policy intervention, Oregonians are at risk as more data centers come to town.

You Can Get Involved!

This June, the Governor’s Data Center Advisory Committee will meet to discuss energy and affordability issues. CUB’s Executive Director, Bob Jenks, will be speaking about the need for policymakers to address these issues. We need you to join us in calling for strong protections and solutions for data centers’ energy impact in Oregon.

Through June 26, you can submit written comments by emailing .(JavaScript must be enabled to view this email address). For the biggest impact, add what you are concerned about with data centers and your utilities!

Want to go even further? Connect with CUB’s Community Organizer to get more involved with action on data centers! Email .(JavaScript must be enabled to view this email address) to see how you can join the movement.

 

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