Hillsboro residents push back on ‘data center explosion’ - Oregon Public Broadcasting

Hillsboro, Oregon, is experiencing significant local opposition to what residents describe as a "data center explosion," marked by active public pushback against tax breaks for new developments. Over 200 residents packed a Hillsboro City Council meeting, expressing frustration with the council's approval of tax exemptions for numerous data center projects and calling for action against the rapid expansion.

This local sentiment mirrors a growing national backlash against data centers, despite their role in supporting internet infrastructure and the booming demand from artificial intelligence. A recent Gallup poll indicates 70% of Americans oppose local data center construction, and opposition has even influenced local elections, as seen with the defeat of a Hillsboro state legislator.

The core of the controversy in Hillsboro revolves around the state's Enterprise Zone program, which grants three to five years of property tax exemptions. Hillsboro Economic Development Director Dan Dias explained that applications meeting minimum requirements must be approved by city staff, but residents, including Chris Pinkham and Charolyn Concepcion, argue that corporations are abusing the program. They contend that data centers create few permanent jobs and offer wages below a living standard, despite the temporary construction boost.

Public commenters also raised concerns about environmental impacts and the council's perceived reluctance to address the issue. Residents urged actions ranging from suing the state to increasing other taxes and fees or authorizing comprehensive impact studies. The council ultimately decided to continue the discussion at an upcoming meeting on June 9, amidst a state-imposed moratorium on data center tax abatements set to begin on June 6.