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The Dalles plans to expand its water reservoir by acquiring federal land from Mount Hood National Forest, aiming to increase capacity from 900 acre-feet to about 3,000 acre-feet by 2040. City officials state the expansion is necessary for local growth, despite concerns it may primarily benefit Google, which currently uses one-third of the city's water supply.

Google's water consumption has increased significantly since it opened its data center in 2006, and the city’s master water plan projects a need of at least one million gallons per day for an unnamed industrial user. The expansion project is estimated to cost $70 million and has passed the House, now awaiting Senate review. Environmental groups worry this could negatively impact local ecosystems, particularly fish and wildlife.