Umatilla Declares Emergency Over Threatened Data Center Revenue

Umatilla, Oregon, has declared an emergency after statewide restrictions on new data centers threatened about $6 million in expected city revenue. The declaration addresses potential future losses, not a current budget crisis: officials said city services and financial obligations remain unaffected, and the disputed revenue has not been received.

City Manager Dave Stockdale said the expected income had been included in future plans for infrastructure work, including a proposed police station and water system upgrades. He warned that interruptions could force officials to reconsider project schedules. The city estimates the restrictions could put more than $5 billion in prospective private investment at risk and threaten at least 1,000 construction jobs, as well as hundreds of permanent positions.

Umatilla has four operating data centers; another is under construction, and two more developments are awaiting completion. The local industry includes Amazon Web Services and Sabey Data Centers. Projects awaiting regulatory approval could face delays of more than two years, the city said.

In October, Governor Tina Kotek directed Oregon environmental authorities to suspend new pollution permits for data centers, restricting development until July 2027. The city council’s emergency resolution calls for an economic assessment and must be reconsidered within 90 days. It also urges Kotek to revisit the restrictions. The source reports that municipal officials say the declaration is intended to protect future investment plans.