Data center not permitted under zoning of former Hynix factory, city says
The city of Eugene has determined that a data center cannot be operated at the former Hynix semiconductor plant, citing existing E-1 zoning rules. The city rejected arguments that modern data centers fit the "Information Technology Services" category, noting concerns about low employment, environmental impacts, and traffic. The decision can be appealed, and the Eugene City Council is scheduled to discuss data centers in the zoning code.
The city of Eugene, Oregon, has ruled that a modern data center is not permitted under the existing E-1 zoning for the former Hynix semiconductor plant site at 1830 Willow Creek Circle. Planning and Development Director Alissa Hunter formally notified attorney Bill Kloos, representing an unidentified client interested in purchasing the 200-acre property, of this decision on September 8. Kloos had requested in July whether a data center, among other industrial uses, would be allowed under the current zoning.
Hunter's decision stated that the "Information Technology Services" land-use category, added to Eugene code in 2001, was not intended to encompass large, modern data centers. She also noted that when the E-1 zoning category was revised in 2014, data centers were not added as an allowed use despite their growing presence in Oregon. The city further elaborated that E-1 zoning is designed for firms contributing to economic diversification with a high number of employees, which a "self-operating" data center with "little human presence" would not meet.
Environmental concerns were also cited, with Hunter noting that data centers notoriously generate "offensive external impacts" such as noise and exhaust from diesel generators, and water use potentially linked to temperature increases, sediment, nitrates, and "forever chemicals." The city also raised questions about building size and traffic impacts, as Kloos's application lacked specific details. The city's decision can be appealed to the Oregon Land Use Board of Appeals. The Eugene City Council is tentatively scheduled to discuss "Data Centers in the Zoning/Land Use Code" on December 14, following significant community interest generated by this request.