A new report, jointly published by ECOnorthwest and the University of Virginia and funded by the Lemelson Foundation, provides a detailed look at the current state of data centers in Oregon. The report identifies 111 operational data centers in the state, with 32 more either under construction or in the planning phase. These facilities contribute around 2,630 direct jobs and consume approximately 23% of the state’s retail electricity sales by 2025. However, the report also highlights a lack of comprehensive data on how these centers affect local economies and communities, particularly in terms of water usage and environmental impact. In July 2026, Henrico County, Virginia, experienced a significant energy crisis due to the rapid expansion of data centers in the area. Local officials are now requesting schools and government employees to cut their electricity use sharply, as electricity rates are expected to rise by 25%. This increase could add an additional $5 million to the public budget for 2027. Despite the existing 37 large-scale data centers in the region, new projects continue to be developed, even as local communities express growing opposition. The surge in demand for energy by data centers, especially those used for artificial intelligence (AI), has caused a shortage of gas turbines. This shortage has overwhelmed major manufacturers like GE Vernova, whose orders are already backlogged until at least 2031. As a result, electricity costs have risen, and some operators are forced to use coal or backup engines, despite the environmental concerns. This energy crisis is seen as a major challenge for the development of AI in the U.S., with many digital projects at risk of being delayed or abandoned. The report from ECOnorthwest emphasizes the growing data center market in Oregon, with 111 operational facilities and 32 more planned or under construction. However, the study found that information on water usage and other environmental factors is inconsistent or missing, making it difficult to assess the full impact of these centers. Terry Wirkkala, project director at ECOnorthwest, said the study aims to provide clarity as data centers become a major topic of public debate. While tax incentives have encouraged data center growth, some communities are now considering or implementing temporary bans on new facilities, especially as the November elections approach. The report also points out that Oregon has two distinct data center markets. The eastern part of the state, which hosts large hyperscale data centers, is more developed, while the western part is expected to see more growth in the future. These western data centers are typically smaller and used by multiple companies that rent space, often located in buildings that also house offices. Meanwhile, in Europe, companies like Grundfos have warned about the pressure on water and energy resources caused by data centers. They argue that without strict regulations and sustainable practices, local infrastructure could be overwhelmed by 2030. However, some critics believe such regulations could slow Europe’s progress in AI development.