Portland General Electric will build two solar projects in Eastern Oregon to meet growing demand from data center operators, the utility announced Tuesday.

PGE will spend approximately $540 million on a 125-megawatt solar facility and a 125-megawatt battery energy storage system in Sherman County. And in Morrow County, PGE will invest approximately $490 million in a 240-megawatt solar facility and a 125-megawatt battery system.

“We’re advancing critical infrastructure investments that will support economic development, both in Oregon and in Washington, and builds on a base of growing data center and high-tech customers,” PGE CEO Maria Pope said in a conference call on Tuesday.

The announcement came as PGE reported fourth-quarter and annual results. The utility is publicly traded under the stock symbol “POR.” PGE stock slipped 2.7 percent on Tuesday.

PGE also revealed a major acquisition, saying it would acquire PacifiCorp‘s Washington utility operations for $1.9 billion, in a deal financed in a partnership with Manulife Investment Management. PGE will manage the Washington utilities as a newly formed subsidiary regulated by the Washington Utilities and Transportation Commission.

“In this time of unprecedented electricity demand, PGE’s commitment to the Pacific Northwest and our excellent service and energy infrastructure will benefit Central and Southeastern Washington,” Pope said.

Construction of the new solar projects will begin this year; they’re slated to come online by the end of 2027, Pope said. They are eligible for federal tax credits between 30 percent and 40 percent, she added.

PGE is also moving forward with last year’s request for proposals for new generation resources, and a short list will be submitted to the Oregon Public Utility Commission this week, said Joseph Trpik, PGE’s chief financial officer.

The Portland-based utility’s large customer group — such as industrial users, including data centers — is expected to grow by 10 percent annually through 2030, Pope said.

Utilities nationwide have come under public pressure as data centers’ voracious appetites for power have caused residential rates to soar. In a nod to rising prices, Pope said PGE’s tariff proposal includes a 25 percent price hike for data center customers, which is expected to “reduce residential and small business customer prices.”

Data centers now account for about 6 percent of PGE’s total customer load, Pope said.

PGE’s total load increased 3.8 percent in 2025, and 4.7 percent in weather-adjusted terms. The industrial load jumped 14 percent, while the residential load fell 1.8 percent.

Trpik attributed the load increase to “diverse and growing data center and high-tech customers.” Warm weather in the fourth quarter weakened overall demand, he said.

The Washington deal will add 140,000 customers around Yakima, Walla Walla and other communities in Central and Southeast Washington, PGE officials said.

“This acquisition is a great fit,” Pope said, calling the deal an “excellent opportunity to expand our service to Washington state and acquire generation, transmission and distribution assets we know very well.”

The acquisition must be approved by regulators in Oregon and Washington. The regulatory process should require 11 to 12 months, Pope said.

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