Portland Council to vote on ban on secret NDAs with Data Center Developers

The Portland City Council is scheduled to vote Wednesday on a resolution aimed at blocking secret negotiations with data center developers. The measure, sponsored by five council members, urges city administrators and officials to refuse signing non-disclosure agreements for potential data center projects and requires staff to alert council members if a company requests a meeting or permit for facilities drawing 20 megawatts or more.

This initiative is a pre-emptive response to the rapid expansion of hyperscale computing hubs in the Pacific Northwest, driven by AI and cloud computing, which has raised concerns about massive electricity and water consumption. City documents note that data centers currently account for 5.6% of Oregon's electricity use, with the state's aggressive buildout coinciding with a 50% increase in electric bills for customers of Portland General Electric and Pacific Power.

While Portland hosts 17 smaller data centers, it lacks hyperscale facilities. However, neighboring communities like Hillsboro have already enacted moratoriums, and Seattle and Tacoma have approved outright bans on new data center construction. Sponsors argue that NDAs prevent public awareness of the industry's demands until projects are approved. The resolution explicitly indicates the council's intention to explore a local moratorium or zoning restrictions on hyperscale facilities in the near future.