Hillsboro, Oregon, Enacts Moratorium on New Data Center Construction
The Hillsboro City Council in Oregon recently voted to enact a 120-day moratorium on all new data center construction, reversing its long-standing support for the industry. This decision came after significant public outcry over power use, potential pollution, water consumption, loss of industrial land, and tax incentives granted to data centers. The moratorium aims to allow the city time to evaluate future policies regarding data center development.
The city of Hillsboro, Oregon, has taken a dramatic U-turn on its stance toward data center development, with the City Council unanimously voting for a 120-day moratorium on new construction. This decision, announced with only 24 hours' notice to prevent a flood of permit applications from the tech industry, comes after years of the city championing data centers and offering significant tax incentives, totaling hundreds of millions of dollars.
Mike Rogoway, a business reporter for The Oregonian, highlighted the shift in public sentiment, noting residents' outrage over power consumption, pollution from backup generators, water usage, the dwindling availability of industrial land, and the perceived lack of jobs generated by data centers despite substantial tax breaks. Mayor Beach Pace, who previously supported economic development through data centers, acknowledged the extraordinary nature of the surprise meeting, stating it was necessary to preempt the tech industry's potential rush for permits.
The 120-day period will allow Hillsboro to study its options under Oregon land use law, which could range from implementing a slow-growth approach to a permanent halt on new data center construction. Projects already on the books, estimated at around 60 acres of development, will proceed. The sudden change in policy was partly spurred by a state legislative moratorium on a specific class of data center tax breaks, which led to a surge of 17 applications from data centers seeking long-term tax incentives stretching into the 2050s, further infuriating residents and local officials.
The article suggests this move by Hillsboro could be a bellwether for other communities in Oregon and across the nation, as public awareness and opposition to the rapid growth of the data center industry intensify. Similar concerns are emerging in Salem, where a proposed $5 billion data center project faces strong resident opposition due to land use and employment concerns, exacerbated by a non-disclosure agreement that kept the project hidden from the public and city council for a period.