by Alex Baumhardt, Oregon Capital Chronicle
July 28, 2026
Just days before the Oregon Legislature in March passed a one-year pause on a popular tax incentive program for data centers, a group called Oregon Connects registered as a nonprofit business in the state. Then the ads started appearing.
“From homes to hospitals to businesses, Oregon’s data centers are unlocking a smarter power grid for our communities,” a female voice reads over a montage that includes a few aerial shots of downtown Portland and the Oregon Coast. “They’re investing billions in clean energy, creating good-paying jobs, driving innovation and building a better energy future.”
The 30-second ads, which feature B-roll of a family cooking together, a nurse and a business owner, are a near-carbon copy of ads playing across TV and social media in at least six other states. They all attempt to counter common critiques of data centers, including their enormous demand for water, energy, land and relatively low levels of job creation compared to the tax breaks they receive to spur economic development. And they end with a similar line: “Oregon’s data centers: committed to paying their costs, so Oregon families don’t.”
Oregon Connects paid for the Oregon ads, while similar promotional campaigns in other states are sponsored by Indiana Connects, Connected Ohio, North Carolina Connects, Pennsylvania Connects, Texas Connects and Virginia Connects.
They’re all part of a network of groups created by the nonprofit Data Center Coalition, an industry group hoping to improve public opinion of data centers as pushback grows. In each of these states, a growing number of local governments and legislatures are considering and passing policies meant to slow data center growth.
The coalition counts among its members leaders from Microsoft, Google, Meta, QTS and Equinix — all companies that collectively have built dozens of data centers in Oregon during the last decade due to the state’s lack of sales tax, generous property tax incentives and relatively inexpensive electricity, saving the companies hundreds of millions a year.
But in recent years, the data center companies have been criticized for driving up regional energy demand, leading Oregon lawmakers and regulators to demand electric utilities create a new customer class for data centers so they don’t contribute to residential electricity costs. There have also been growing calls to revisit the state’s industrial tax incentive programs.
‘Committed to paying’
Oregon Connects filed business registration paperwork with the Oregon Secretary of State’s Office on March 4 as a “social welfare organization that promotes data centers,” the same day that the Oregon House voted to pass a bill that included a one-year moratorium on Standard Enterprise Zone tax abatements for data centers. The tax incentive is the smallest of Oregon’s three major industrial tax breaks, and data center companies building facilities in Hillsboro and Forest Grove have used it.
The bill, sponsored by Oregon Gov. Tina Kotek, originally would have expanded the Standard Enterprise Zone tax program and another, the Longterm Enterprise Zone program, leading to a potential boon for data centers. But Kotek backed down after reporting from The Oregonian/OregonLive revealed that most of the programs’ benefits in recent years have been flowing to data centers, and the top 11 tech-company-owned data centers in Hillsboro will receive an average of $294,000 in property tax breaks for each full-time employee on their payrolls this tax year.
Even with the one-year pause, data centers will this year save $85 million in Oregon property taxes from the Standard Enterprise Zone program, according to reporting in The Oregonian/OregonLive.
Juan Carlos Ordóñez, communications director of the left-leaning nonprofit Oregon Center for Public Policy, criticized the Oregon Connects ad campaign for making it seem like tech companies give more than they get from the state.
“If data centers were truly ‘committed to paying their costs, so Oregon families don’t,’ then they wouldn’t be taking hundreds of millions of dollars in property tax abatements each year,” he said in an email. “Oregonians should be able to see for themselves how much Amazon, Meta and the other owners of data centers actually contribute in taxes, which is why it’s time the state enacted corporate tax transparency.”
Josh Levi, the Data Center Coalition president who registered Oregon Connects, said transparency is the campaign’s purpose.
“Through Oregon Connects, the industry seeks to better explain the role of data centers to the public — including how they operate, why they are important to our daily lives and the 21st-century economy, as well as information about the industry’s responsible usage of water and its commitment to paying for the energy it uses,” he said in an email.
But who exactly is footing the bill for the ads is unclear. Spokespersons for Oregon Connects declined to answer questions about who funds the ads.
The Data Center Coalition had about $4.6 million in operating revenue in 2024, according to its most recent tax filing in November 2025. It spent more than $250,000 on advertising in 2024. Tax-exempt social advocacy organizations are not required to publicly disclose the names or addresses of contributors on annual tax forms.
Federal Communications Commission data shows Virginia Connects, Pennsylvania Connects and North Carolina Connects spent hundreds of thousands of dollars on TV ads in recent months. North Carolina Connects spent nearly $370,000 on more than 740 ads across 189 channels in the past month alone. FCC data does not yet reflect any television spending in Oregon, Ohio or Indiana.
Community and corporate campaigns
Jenni Denekas, a spokesperson for the environmental advocacy group 1000 Friends of Oregon, said the ads are a response to Oregonians organizing and unifying around “very real concerns about data center development.”
The group recently joined a lawsuit with local leaders, businesses and farmers in Hillsboro against the city government over its recent flurry of approvals for tax breaks to data centers that, in some cases, offer them 25 years of back-to-back waivers from paying property taxes.
“If Oregonians were getting such a great deal from data centers, we wouldn’t be seeing so many people expressing concerns about the costs to our communities, including higher energy and water bills to subsidize all the new build-outs required to support this water- and energy-intensive industry,” Denekas said.
On Monday afternoon, the Hillsboro City Council unanimously agreed to a 120-day moratorium on approvals of any new data center and battery energy storage systems in the city.
Dirk Knudsen, a community leader and editor of the Hillsboro Herald community newspaper, has advocated for more transparency around data centers. He said the moratorium was the result of “hundreds of residents coming forward, giving up their evenings and workdays to come and speak their truths.”
That’s the opposite of what he sees from Oregon Connects.
“We are not looking at a spontaneous, homegrown community campaign,” he said. “We are looking at a highly sophisticated, out-of-state public affairs blitz designed to build public consent before Oregonians can fully deliberate the real impacts on our power grid, water resources and tax structure.”
Oregon Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Oregon Capital Chronicle maintains editorial independence. Contact Editor Julia Shumway for questions: [email protected].