Document text
Oregon Forms Data Center Advisory Committee as AI Growth Raises Fears Over Energy Costs and Water Use Top Stories By Lucille McNamara On Jan 21, 2026 Google data center on the Columbia River in The Dalles, Oregon | Credit: Lambtron Amid growing concerns about the energy needs of rapidly expanding data centers, which are investing billions of dollars in training and running AI models, Oregon Governor Tina Kotek has appointed a statewide Data Center Advisory Committee. The governor has tasked the committee with developing actions and recommendations to address concerns surrounding the expansion of data centers across Oregon. Affordable Energy and Protection of Critical Water Resources Will Be the Main Focus Kotek indicates a two-pronged target – she expects the new advisory committee to protect affordable energy costs and the state’s critical water resources. In a press statement, the governor says that Oregonians are concerned about rising utility bills, and the state must embark on ‘frank conversations about the challenges and opportunities’ that lie ahead. Data centers consume massive amounts of water for cooling servers, humidity, and fire suppression. These national estimates show why water is part of the conversation: Metric Estimate Notes Direct water consumed by U.S. data centers 17 billion gallons in 2023 On site water used for cooling and operations Share of direct water used by hyperscale and colocation 84% of total Largest facilities drive most use Projected hyperscale direct water use 16 to 33 billion gallons per year by 2028 Range reflects different growth scenarios What this does not include Indirect water use Water tied to power generation is not counted here Oregon is Home to Tech Giants Google and Meta Oregon is home to major hyperscale data centers for tech giants like Google and Meta. It is also home to colocation centers in the Portland metro area. Then there are smaller enterprises and managed service data centers in Eugene, while connectivity hubs are in locations like Bandon. The state has actively encouraged data centers to open in Oregon, offering tax incentives, a robust infrastructure, and a cool climate, which improves energy efficiency and reduces cooling costs. Public Participation will be Integral to the Advisory Committee’s Investigation Public participation will play a central role in shaping the advisory committee’s recommendations, ensuring that Oregon maximizes the economic benefits brought by data centers. The committee will also focus on keeping utility costs affordable for all state residents, with particular attention to low-income, working households, and other ratepayers. The committee is required to deliver its report to the governor by October 2026. According to the Pew Research Center, the rapid expansion of Artificial Intelligence in recent years has prompted the expansion of data centers, a growing trend that could impact energy supplies and the environment. Tidings Data Snapshot What powers U.S. data centers Natural gas : over 40% Renewables : about 24% Nuclear : around 20% Coal : around 15% Source: Pew Research Center summary using IEA estimates on U.S. data center electricity mix Dailytidings.com Data centers consumed 183 terawatt-hours of electricity in 2024 – equivalent to the entire nation of Pakistan’s annual electricity needs. This demand is expected to increase by 133% in 2030. According to the Electric Power Research Institute, Oregon data centers consumed 11% of the statewide grid’s energy supply , with projections showing that their demand for electricity could reach a quarter of total usage by 2030, straining grid reliability and threatening clean energy targets. Tidings Data Snapshot Oregon data centers share of Oregon electricity 2030 projection: nearly 25% of Oregon electricity use 2024 estimate: 11% of Oregon electricity use Bars show relative scale based on 11% vs 25%. Source: Oregon Public Utility Commission filing citing EPRI estimate and 2030 projection Dailytidings.com Consumers have been hard-hit by electricity price hikes in recent years and, according to the U.S. Information Administration, typical household bills in 2024 were $142 monthly, an increase of 25% compared to 2014. Share Twitter Facebook ReddIt WhatsApp Pinterest Email