Oregon halts fiber permits pending data center review

Fiber-optic companies in Oregon are waiting on state approvals for cable projects that may now face a second layer of review. The Oregon Department of Transportation has placed at least 20 right-of-way permit applications on hold. This pause follows an executive order by Gov. Tina Kotek that restricts new data center leases on state properties.

The governor issued the order in September. It directs state agencies to pause approving new or pending leases, easements, and right-of-way permits for data centers located on state lands. The department is now checking if the suspended fiber projects are specifically tied to those data centers.

Agency spokesperson Kevin Glenn stated that officials have limited insight into the full purpose of the proposed projects. He noted that the department did not set a deadline for companies to respond to inquiries. According to Glenn, the timing of the resolution depends entirely on the proposers.

Glenn explained in an email that the applications involve burying broadband or fiber conduit on state right-of-way, typically along the highway shoulder. He said this location strongly indicated a potential connection to data centers. The agency asked the companies to describe their projects to clarify their end-use.

Three companies hold the paused applications: Zayo Group Holdings, Lumen, and Intermountain Infrastructure Group. All three operate large-scale underground cable networks across the West. These networks connect data centers, cellular providers, and other processing facilities.

Zayo, based in Denver, completed a 622-mile long-haul fiber route in 2025. That route links data centers in Prineville and Umatilla to Reno, Nevada. The state has paused nine of Zayo’s permits. These allow the company to lay cables along highways from Morrow to Multnomah counties and between Wheeler and Clackamas counties.

Lumen, a multinational firm, owns six data centers in Oregon, including locations in Portland, Eugene, and Bandon. The department has 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. Work on that corridor was slated for completion this year. Two of its permits to expand into Umatilla County are currently on pause.

Representatives for the three companies have not responded to requests for comment 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 uncertainty sends a concerning signal to investors.

Boender stated in a statement that pausing work on projects that followed the process puts jobs and tax revenue at risk. She added that the moves place a burden on companies that were otherwise following all state rules. The department has not announced a date for when it will release its findings on the 20 applications.