Oregon data centers generate $60 million in statewide tax revenue, research study finds

PORTLAND Ore. (KPTV) — Oregon data centers generate roughly $60 million in statewide tax revenue and employ more than 2,600 on-site workers, but their surging power demands now rival the electricity consumption of most residential homes across the state.

Those findings come from a statewide assessment conducted by economic consulting firm ECONorthwest and the University of Virginia, funded by The Lemelson Foundation. Terry Wirkola, an applied economist and project director at ECONorthwest, discussed the research on Fox 12 Oregon.

The study identified 111 operational data centers across Oregon, which consumed more than 14 terawatt-hours of electricity last year. That total equals about 71% of all electricity sold to Oregon households combined. Power usage by the sector has nearly quadrupled since 2020 and could account for approximately one-third of the state’s entire electricity demand by 2030.

Researchers found that the state’s facilities are split into two distinct markets along the Cascade Mountains.

“Oregon does not have a data center industry,” Wirkola said. “It really has two separate industries on the east and west side of the state.”

Eastern Oregon hosts 70 data centers, largely dominated by hyperscale campuses with multiple large buildings. Those sites employ 2,205 direct operational workers and generate about $37.6 million of the industry’s $60 million total projected tax revenue for 2025–2026. Western Oregon features a more varied collection of 41 facilities, employing 425 workers and generating approximately $22.6 million in taxes.

Growth is accelerating despite mounting pressure on utilities. The report noted 32 additional data centers are planned or under construction statewide, with the bulk of future expansion expected in western Oregon. Researchers emphasized that keeping pace with this pipeline will require major investments in new power generation and regional transmission lines.

Industry operators continue to target Oregon due to tax incentives, the lack of a state sales tax, fiber connectivity, and access to land and utilities, with major hubs located in Hillsboro and along the Columbia River Gorge.