Oregon halts fiber permits over data center order

Oregon's state highways are facing a pause in fiber-optic construction. The halt follows an executive order by Gov. Tina Kotek that restricts data centers on state lands. This move has created immediate friction for telecommunications companies trying to expand their networks along public roads.

The Oregon Department of Transportation (ODOT) placed at least 20 permit applications on hold. These applications involve the installation of buried broadband or fiber conduit on state right-of-way. The agency is currently reviewing these files to determine if the projects are directly tied to data center operations.

Kotek issued her order in September. It directs state agencies to pause approving new or pending leases, easements, and right-of-way permits for data centers on state properties. ODOT responded by freezing the 20 pending applications from fiber-optic firms. The agency released these records to the Capital Chronicle.

Kevin Glenn, a spokesperson for the transportation agency, explained the process. He noted that officials are verifying whether the projects are specific to data centers. The agency has limited insight into the full purpose of these builds. Glenn stated that no deadline was set for the companies to respond to inquiries. He added that the timing depends on the proposers.

Glenn wrote in an email that the proposed applications allow for the installation of a large amount of buried broadband or fiber conduit on state right-of-way. This infrastructure is typically located along the highway shoulder. He said this placement strongly indicated a potential connection to data centers. The agency has asked the companies to describe their projects to clarify their association with data centers.

Three companies control the paused applications. These firms are Zayo Group Holdings, Lumen, and Intermountain Infrastructure Group. All three own large-scale fiber optic networks. These networks use underground cables to connect data centers, cellular providers, and other information processing facilities across the West, including Oregon.

Zayo, based in Denver, completed a 622-mile long-haul fiber optic cable route in 2025. That route connects data centers in Prineville and Umatilla to Reno, Nevada. ODOT paused nine permits for Zayo. These permits allow cable laying along highways from Morrow to Multnomah counties and between Wheeler and Clackamas counties.

Lumen, a multinational company, owns six data centers in Oregon. These include facilities in Portland, Eugene, and Bandon. The department paused nine permits for Lumen. These permits cover underground cable installation from Wasco to Umatilla, Baker, Lincoln, Linn, and Malheur counties.

Intermountain Infrastructure Group, based in California, does not own data centers in Oregon. The company has been building a fiber infrastructure corridor across the Pacific Northwest. That project was slated for completion this year. ODOT paused two of its permits to expand into Umatilla County.

Representatives for the three companies have not responded to comment requests over the past two weeks. The Data Center Coalition, an industry group, criticized the pause. Khara Boender, the coalition's West Coast director of government affairs, said the pauses are burdensome to companies following state rules. She stated that the action sends a concerning signal to companies weighing long-term investment in Oregon.