Eugene says zoning doesn't allow data centers at former Hyundai/Hynix campus

The City of Eugene has declared that data centers are not a permissible use for the former Hyundai/Hynix campus in West Eugene, following an inquiry from an undisclosed contractor. Local land use attorney Bill Kloos, representing an unknown client, had submitted a zone verification request to determine if the property at 1830 Willow Creek Circle could be redeveloped for data center operations. Eugene's Planning Director, Alissa Hunter, formally responded on Tuesday that data centers are prohibited in the site's E-1 employment zone.

Hunter's decision highlighted that the E-1 zone was established for businesses providing significant employment, which data centers typically do not. Furthermore, she cited concerns over the potential impact on neighbors due to data centers' high energy consumption, noise generation, and substantial water use for cooling. Lindsay Selser, Communications and Engagement Manager for the City of Eugene, clarified that the request was merely for zone verification and not a concrete development proposal, meaning the planning director's ruling applies specifically to the allowed uses within that zone.

This local decision aligns with increasing statewide pushback against data center development in Oregon, largely driven by environmental and electricity usage concerns. Notably, Oregon Governor Tina Kotek recently announced her support for a moratorium on data centers, having previously intervened to prevent a land sale for a data center project in Salem. Additionally, the Hillsboro City Council enacted the state's first data center moratorium in July.