Eugene blocks data center at old Hynix plant

Eugene blocks data center at old Hynix plant

News ClipKEZI·Eugene, Lane County, OR·9/10/2026

The City of Eugene has rejected a proposal to convert the former Hynix plant into a data center due to E-1 zoning restrictions and concerns about economic diversification, noise, and water use. The decision can be appealed to the Oregon Land Use Board of Appeals.

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Gov: City of Eugene, Oregon Land Use Board of Appeals

The City of Eugene has formally rejected a proposal to repurpose the former Hynix semiconductor plant in West Eugene into a data center. The decision, communicated yesterday by the director of planning and development to an attorney representing the property, cited that the site's E-1 zoning does not permit modern data center operations.

City officials also expressed reservations about the project's alignment with economic diversification objectives and raised potential external impacts, specifically mentioning concerns about noise and water usage. The property owner or developer has the option to appeal this decision to the Oregon Land Use Board of Appeals.