Medford is preparing land-use restrictions for large data centers that could occupy 50 to 150 acres, opening a regional discussion about how major technology developments would fit into Southern Oregon’s communities and infrastructure. City officials directed staff to begin drafting the changes after a September 30 joint session of the City Council and Planning Commission. No ordinance has been adopted, no active data-center application is pending, and no meeting has been scheduled to review the proposed language.
The city’s approach targets the largest facilities while preserving the smaller server rooms and server farms that support existing businesses. Those operations provide the computing infrastructure used to store information, run applications and deliver digital services. The proposed restrictions would address developments operating on a substantially larger scale, where extensive buildings, cooling equipment and electrical systems can create demands beyond those associated with ordinary business technology.
Medford’s current development code allows data centers in all commercial zones and the Light Industrial zone, but excludes them from General and Heavy Industrial zones. The city has no special design or location standards specifically governing data centers. Officials are considering building-size limits and location requirements, including proximity to homes and major streets, along with standards addressing noise and glare. The eventual draft will establish how staff proposes to translate those concerns into enforceable requirements.
For residents of Grants Pass and Josephine County, the discussion reaches beyond a neighboring city’s zoning map. Medford’s proposed regulations would govern development within Medford, but the underlying questions involve resources that Southern Oregon communities depend upon: reliable electricity, available water, suitable land and infrastructure capable of supporting additional demand. A future proposal elsewhere in the region would require its own review, with effects determined by its location, scale, equipment and utility arrangements.
The Rogue River connects much of that regional concern. Running through Grants Pass and across Josephine County, the river supports community water supplies, recreation, fisheries and businesses tied to the watershed. Any substantial new demand for water in Southern Oregon would warrant examination of the proposed source, the amount required and the conditions governing its use. Medford’s current discussion identifies potential water demands, but it does not establish that a developer intends to withdraw water from the Rogue River.
That unanswered question is central to evaluating any future project. Acreage alone cannot establish a facility’s water consumption, and the city’s update provides no project-specific figures for cooling, wastewater or water supply. Without an application, there is no basis for assigning a particular effect to the river or predicting a shortage. Residents following the issue will need information tied to an actual development before its consequences for households, businesses or the watershed can be assessed.
Electricity presents another concern because large data centers operate substantial computing and supporting equipment. Federal research released in December 2024 estimated that data centers consumed approximately 4.4 percent of U.S. electricity in 2023 and projected that their share could reach between 6.7 and 12 percent by 2028. Those national figures describe the industry’s expanding demand; they do not predict consumption in Medford, Grants Pass or Josephine County.
Oregon has begun addressing how the cost of that growth is assigned. Implementation of the state’s POWER Act increased average data-center electricity rates in Portland General Electric’s territory by 29 percent while reducing average residential rates by 1.3 percent, according to a state update. Pacific Power’s implementation review was expected to conclude later in 2026. The reported PGE changes therefore cannot be treated as savings already reaching Southern Oregon customers.
The practical issue for residents is whether new facilities would pay the costs associated with serving them. Additional power demand can involve infrastructure investment, making utility agreements and rate decisions part of the development picture. Medford’s land-use work addresses where and under what conditions facilities could operate, while state utility proceedings address a separate question: how electricity service and its costs are managed.
Air quality also enters the review. Oregon’s Department of Environmental Quality identifies diesel backup generators at data centers as potential sources of particulate matter, nitrogen oxides and other pollutants. The agency offers a streamlined permitting pathway for qualifying facilities using stronger emissions controls. Existing state rules require applicable air-permit applications to document equipment, fuel use, emissions and nearby properties, along with local land-use compatibility when required. Generator specifications would therefore matter alongside building size and location.
At the state level, Governor Tina Kotek directed agencies September 8 to pause unapproved requests involving state-owned property for data-center projects. The action covers easements, rights-of-way, leases, rentals, land-use permits and property sales or transfers. It remains in effect through July 1, 2027, unless subsequent statewide action changes it. The directive concerns state property and does not impose a blanket prohibition on privately owned development sites in Southern Oregon.
Oregon’s Data Center Advisory Committee is also examining economic opportunities, utility costs, infrastructure investment and environmental effects. Written comments on its preliminary findings and questions document are being accepted until 5 p.m. October 24. For Grants Pass and Josephine County residents, that process offers an opportunity to raise questions about the Rogue watershed and regional infrastructure before statewide recommendations are completed. Medford’s next local step remains the preparation and review of proposed code language, with the size, location and operating requirements of any future development still undetermined.