Lawsuit challenges Hillsboro data center tax breaks for NVIDIA, Adobe & more

News Clip2:45KATU News·Hillsboro, Washington County, OR·6/26/2026

A coalition of advocacy groups has filed a lawsuit challenging tax incentives approved for data center projects in Hillsboro, Oregon, arguing they divert public funds from schools. The lawsuit targets agreements involving companies like Nvidia, CoreWeave, Adobe, QTS, and Flexential, alleging Hillsboro and Washington County exceeded their authority. City officials contend they followed state law and approved the incentives before a state-wide moratorium took effect.

legalgovernmentmoratorium
NvidiaCoreWeaveQTS
Gov: Hillsboro, Washington County
A coalition of advocacy groups filed a lawsuit challenging the tax incentives approved for several major data center projects in Hillsboro, arguing the agreements divert public money away from schools and essential local services. The lawsuit targets enterprise zone tax exemptions tied to projects involving companies including NVIDIA, CoreWeave, Adobe, Dropbox, QTS, and Flexential. Plaintiffs allege Hillsboro and Washington County exceeded their authority, failed to follow required procedures, and approved the agreements without sufficient evidence that the projects would deliver the economic benefits required under Oregon law. City officials dispute those claims, saying they followed state law and had no legal authority to reject qualifying applications before Oregon's moratorium on new data center enterprise zone incentives took effect. The case adds a new chapter to the ongoing debate over balancing economic growth with public investment and accountability. _______________ Stay up to date with our social media: KATU on Facebook: https://www.facebook.com/katunews KATU on Twitter: https://twitter.com/KATUNews Subscribe to KATU on YouTube: https://www.youtube.com/channel/UCmDTerxNU_gvCWLkIPkqghA/?sub_confirmation=1 Daily News Playlist: https://www.youtube.com/playlist?list=PLFtHM_AbvnEUkd_YRTlZpGKkbczT5w062 For more information, visit https://katu.com/ Have a news tip? Send it directly to us: Email us: newstips@katu.com Call the Newsroom: 503.231.4222 KATU is a OR based station and a ABC Television affiliate owned and operated by Sinclair Broadcast Group. Sinclair Broadcast Group, Inc. is one of the largest and most diversified television broadcasting companies in the country today. #DataCenters #OregonNews #Hillsboro #TechNews #EconomicDevelopment #WashingtonCounty #ArtificialIntelligence #KATU #Katu2abc #Portland #Oregon #localnews #oregonnews