In the vast and rapidly evolving landscape of hyperscale data centers, site selection is everything. For over a decade, giants like Amazon, Google, Meta, and Microsoft have gravitated toward familiar powerhouses like Northern Virginia, Silicon Valley, and Dallas. But with rising land prices, strained power grids, and increasing sustainability pressures, these traditional hubs are nearing saturation. Enter Eastern Oregon—a quietly booming region now catching the eyes of hyperscalers eager to future-proof their infrastructure.
This blog explores why Eastern Oregon has emerged as a strategic haven for hyperscale development. From its abundant green power and favorable climate to political support and low costs, this under-the-radar region is shaping up to be the next great hyperscale frontier.
1. The Shift Away from Traditional Hyperscale Hubs
For decades, hyperscalers have concentrated their resources in dense, urban-adjacent markets. Northern Virginia (Ashburn), Santa Clara, and Hillsboro have offered fiber-rich, interconnected ecosystems. However, hyperscalers today are running into several limiting factors in these traditional markets:
Land scarcity: Developable parcels in top-tier regions are rare and expensive.
Power constraints: Grid congestion and long utility lead times are delaying projects.
Regulatory friction: Environmental scrutiny and permitting delays are growing.
High cost of operations: Taxes, energy, and labor costs are climbing.
As a result, hyperscalers are diversifying—seeking alternative regions where they can build massive, energy-hungry campuses without long-term friction.
2. Eastern Oregon: A Geographic Sweet Spot
Eastern Oregon, particularly around towns like The Dalles, Boardman, Umatilla, and Hermiston, has become a magnet for hyperscale attention. The reasons are multifaceted:
Proximity Without Congestion
Eastern Oregon offers a unique blend of proximity to the West Coast without the congestion of cities like Portland, Seattle, or the Bay Area. For latency-sensitive workloads that still require cloud-region adjacency, this location strikes a balance—close enough to major hubs, yet distant enough to avoid their drawbacks.
Flat, Buildable Land
Land in Eastern Oregon is both abundant and affordable, with large tracts available for contiguous campus developments. The region's flat topography and low seismic risk make it ideal for hyperscale builds that demand structural uniformity and minimal environmental disruptions.
3. Clean, Reliable, and Cheap Power
If hyperscalers have one obsession, it’s power. Not just any power—but green, reliable, and affordable electricity at scale. Eastern Oregon delivers on all three fronts.
Hydroelectric Energy from the Columbia River
The region benefits immensely from the Bonneville Power Administration (BPA), which generates power primarily through the Columbia River's hydroelectric dams. This provides a stable supply of clean energy at some of the lowest industrial electricity rates in the country.
Average commercial rates in Oregon: ~$0.07/kWh
Hydropower share of Oregon’s energy mix: ~45–50%
Carbon intensity: Among the lowest in the U.S.
This is a win-win for hyperscalers, allowing them to meet aggressive sustainability targets without premium pricing.
Grid Stability and Utility Cooperation
Utilities like Umatilla Electric Cooperative (UEC) and Pacific Power have demonstrated strong alignment with hyperscale demands. They offer:
- Fast-track interconnection processes
- Scalability for multi-MW demands
- Proactive infrastructure planning
For example, Amazon and Meta have been able to deploy 100MW+ campuses with minimal power delays—a feat that would be nearly impossible in more congested areas.
4. Climate Advantage and Natural Cooling
Eastern Oregon's semi-arid climate offers a hidden but crucial advantage—natural cooling. With average annual temperatures hovering around 50°F and low humidity, data centers can leverage free air cooling for a significant portion of the year.
This reduces reliance on mechanical cooling systems, lowering both PUE (Power Usage Effectiveness) and operational costs. In regions where cooling can account for up to 40% of power usage, this represents a significant efficiency gain.
5. Hyperscalers Already Betting Big
This isn't speculative. Several of the world's largest cloud and social media platforms have already planted deep roots in Eastern Oregon:
Amazon Web Services (AWS)
AWS was among the first movers, establishing data centers in Boardman and Umatilla over a decade ago. Their presence has since expanded significantly, with multiple clusters now operating across Morrow County.
Meta (Facebook)
Meta began operations in Prineville, Oregon, in 2011. What started as a single facility has grown into a 4.5 million-square-foot campus, powered by 100% renewable energy. In 2022, Meta announced additional data center expansions and renewable power investments in the state.
Google has maintained a massive facility in The Dalles since 2006, investing over $1.8 billion in the region and expanding its infrastructure footprint as part of its global AI and cloud ambitions.
These early adopters have paved the way for future builds by working with local governments, expanding infrastructure, and proving the long-term viability of Eastern Oregon as a hyperscale base.
6. State and Local Incentives
Enterprise Zones and Tax Breaks
Eastern Oregon offers enterprise zones, which provide property tax abatements for up to 15 years on qualifying capital investments. Given the scale of hyperscale infrastructure (often $1B+ per campus), these savings are substantial.
Streamlined Permitting
Unlike states with heavy bureaucracy, Oregon's rural counties offer accelerated permitting timelines. This makes it feasible to go from land acquisition to construction much faster—a critical factor for cloud providers in aggressive expansion mode.
7. Emerging Infrastructure and Fiber Connectivity
Contrary to the misconception that rural regions lack connectivity, Eastern Oregon has a growing mesh of long-haul fiber routes and interconnection nodes. Providers like Zayo, CenturyLink, and LS Networks are enhancing bandwidth options, and many routes connect back to Portland, Seattle, and beyond.
Additionally, undersea cable landings on the West Coast give Oregon indirect access to Asia-Pacific markets, making it a viable edge hub for international data flows.
8. Water Efficiency and Sustainability Focus
As water becomes an increasingly scarce and scrutinized resource, data center developers are facing mounting pressure to minimize consumption.
Eastern Oregon's hyperscale facilities are deploying innovative cooling systems that prioritize water reuse, air-side economization, and dry cooling. Meta’s Prineville facility, for instance, uses 100% non-potable water for cooling and implements real-time monitoring to reduce waste.
9. Community Impact and Workforce
While hyperscale campuses are often automated, they still bring construction jobs, tax revenue, and supporting industries to rural towns. Local colleges and workforce programs are now offering data center technician training, ensuring a pipeline of qualified workers.
And while not a tech hub like San Jose, Eastern Oregon’s low cost of living and quality of life are drawing talent from pricier metros, especially with the rise of remote and hybrid roles.
10. Challenges and Considerations
Despite the many advantages, Eastern Oregon isn’t without its hurdles:
Limited public transit and housing can make workforce scaling difficult.
Competition for renewable energy may increase as more players arrive.
Supply chain bottlenecks (e.g., transformers) still impact build timelines nationwide.
However, most of these issues are manageable with proper planning—and pale in comparison to the gridlock facing traditional hubs.
Oregon’s Quiet Revolution
Eastern Oregon represents more than a geographical pivot—it’s a strategic rethink of how, where, and why hyperscale infrastructure gets built. With its mix of green power, climate advantage, affordability, and political support, the region is uniquely positioned to host the next generation of hyperscale campuses.
In an age of AI, cloud-native applications, and edge computing, hyperscalers are no longer just looking for space—they’re looking for sustainable, scalable ecosystems. And increasingly, they’re finding exactly that in the eastern valleys and plateaus of Oregon.
Looking to deploy your next hyperscale or AI-ready site? Datacenters.com offers expert-led site selection, RFPs, and direct access to top providers in Eastern Oregon and beyond. Contact us today to learn how we can accelerate your expansion with confidence.
