Oregon Governor Tina Kotek has directed the Department of Administrative Services to terminate a contract for the sale of state-owned land intended for a proposed data center, citing concerns about public resources, infrastructure, and community impact.

The Land and the Decision

The land at the center of the dispute is approximately 32 acres located at the Mill Creek Corporate Center in southeast Salem.

The state had entered into a contract for the sale of that property for a proposed data center project, but Kotek moved to withdraw the land upon learning of the development plans. Her direction to the Department of Administrative Services to terminate the contract was announced on July 30, 2026.

The governor framed the decision as a matter of stewardship over state-owned assets and the obligation to ensure those assets serve broader public interests.

"This decision is about my responsibility to make sure state actions reflect Oregon's values and serve the public interest," Kotek said in a statement.

"I believe in growing Oregon's economy and welcoming new investment, including in the technology sector. But growth has to make sense for the community, for our infrastructure, and for our natural resources."

Balancing Economic Development with Community Impact

The governor's statement stressed that her opposition to this particular project does not reflect a broader hostility to data centers or technology investment.

Kotek acknowledged the economic development potential of such projects while pointing to the need for decisions that account for housing, energy, water, transportation, and quality of life.

"Oregonians have made it clear they expect thoughtful, responsible decisions about projects of this scale, and I agree," Kotek said.

The governor has previously articulated support for economic development that creates family-wage jobs, strengthens regional economies, and positions Oregon to compete for future investment.

Her office stated the state will continue working with local governments, businesses, and communities to advance economic development that reflects the needs and priorities of Oregonians.

A Statewide Advisory Process Already Underway

The termination of the Salem land sale comes against the backdrop of a broader state policy process focused specifically on data centers and large industrial electricity consumers.

In January 2026, Governor Kotek convened the Statewide Data Center Advisory Committee, tasking it with developing policy recommendations designed to help Oregon take strategic advantage of the economic opportunities created by new data centers and other large-load industrial consumers of electricity.

The committee's mandate also includes addressing the sustainability of utility costs, infrastructure upgrades, and environmental impacts, with particular attention to the effects on low-income and working households and ratepayers.

The advisory committee's work was ongoing at the time of the Salem announcement.

The existence of that committee underscores the state's recognition that data center development represents a significant and growing economic category requiring dedicated policy frameworks, rather than case-by-case decisions made without broader strategic guidance.

The governor's decision to halt the Salem land transaction appears consistent with allowing that advisory process to shape how the state approaches such projects going forward.

State Land Management and the Public Interest

At the core of the governor's rationale is the principle that decisions about state-owned land must advance Oregon's long-term interests and align with state priorities around affordability and responsible economic development.

The Mill Creek Corporate Center land in southeast Salem was state property, and its sale would have transferred a public asset into private hands for industrial development use.

The governor's office indicated that the direction to terminate the contract was prompted by Kotek personally learning of the proposed development, suggesting the transaction had not previously risen to the level of gubernatorial review.

The statement characterizes Kotek's intervention as a reflection of her commitment to ensuring state assets are managed in a manner that supports local communities and reflects responsible stewardship of public resources.

The announcement categorized the matter under environment and energy, signaling that the energy demands associated with large-scale data center operations were among the concerns driving the governor's review.

Data centers are widely recognized as significant consumers of electricity and water, and the scale of their infrastructure requirements can place material demands on regional utility systems.

What Comes Next

The state's position following the termination of the contract is that Oregon remains open to technology sector investment and economic development broadly, but that projects of significant scale must be evaluated carefully against their impacts on infrastructure and natural resources.

The governor's office did not announce any alternative plans for the Mill Creek Corporate Center acreage or indicate whether other development proposals for the site would be considered.

The Statewide Data Center Advisory Committee continues its work developing policy recommendations, and the governor's office directed interested parties to that committee's ongoing process as the vehicle through which Oregon intends to shape its approach to large industrial electricity consumers and the economic opportunities they present.