Portland moves to keep data center deals out of the shadows
Portland's City Council committee has recommended a resolution to increase transparency for data center deals, urging the city administrator to avoid non-disclosure agreements and inform the council about potential projects. This comes amid concerns that current zoning rules could allow large data centers without adequate public knowledge or input. Councilors are also discussing a potential moratorium on new zoning restrictions.
The Portland City Council's Housing and Permitting Committee has taken a preliminary step towards implementing new regulations for data center developments within the city. The committee recommended that the full City Council approve a resolution aimed at increasing transparency around potential data center deals. This resolution, sponsored by Councilors Tiffany Koyama Lane and Mitch Green, urges the city administrator to avoid signing nondisclosure agreements with data center companies and mandates that the City Council be informed about all inquiries related to such projects, advocating for more transparent public processes.
The discussion also highlighted a key concern: Portland's existing zoning code does not specifically define data centers, currently classifying them under "industrial office." City planning staff informed councilors that this loophole means that significantly larger data center facilities could potentially be developed in various parts of the city, including downtown, without specific public scrutiny. The building at 707 Southwest Washington, which already houses data center operations for nine companies, was cited as an example by KATU's Victor Park.
Community members expressed frustration, noting that residents often learn about data center proposals only after secret negotiations have been underway for extended periods or even after initial development has begun. While the committee's vote recommends a "direction" for the city rather than immediate changes to the zoning code or an outright ban on data centers, it signals the Council's intent to establish clearer guidelines. Future actions could include a moratorium on new zoning restrictions or comprehensive changes to the city's code, with broader legislative discussions on the topic expected at the state level.