Hillsboro Council Advances Limits on Data Center Development
Hillsboro's City Council advanced an ordinance that would cap new standalone data center construction at 30 additional acres and add a 1,000-foot buffer around schools. The proposal also would restrict the size and placement of battery storage facilities and follows a temporary data center moratorium imposed in July. A final council vote is scheduled for Oct. 20, with officials saying more rules could follow.
Hillsboro, a Portland suburb, spent years attracting data centers through favorable zoning and tax incentives despite relatively few jobs. The industry now uses over 430 acres there, with 140 more under construction or set aside, and received $84 million in local property tax relief last year while employing 284 people.
Public anger grew in May after operators applied for 17 incentives just before a one-year moratorium began, including successive five-year awards that could extend benefits for decades. The council's proposal would allow only 30 additional acres for standalone data centers, add a 1,000-foot school buffer, and regulate battery storage. A final vote is set for Oct. 20.
Hillsboro's proposed limits could reshape where data centers expand, affecting developers, landowners, and residents near schools or industrial areas. By reducing available land and future tax incentives, the city may trade some revenue and investment for less pressure on farmland, utilities, and neighborhoods. The outcome may also influence how other Oregon localities balance AI-driven demand for computing infrastructure against local environmental and fiscal concerns.