Eugene rejects data center project at former Hynix site

The City of Eugene has rejected a prospective buyer's request to construct a data center at the former Hynix site in West Eugene. The city's decision, outlined in a September 8th letter, cited that the proposed use is prohibited under the E1 (Employment Campus) zone, referencing potential noise emissions, employment numbers, and other environmental impacts associated with large data centers.

Cate Stetson from NBC 16 reported on the local decision, which is contributing to a broader discussion in Oregon regarding data center development. The city indicated that the prospective buyer could appeal the decision to the Oregon Land Use Board of Appeals.

Separately, Governor Tina Kotek has directed state agencies to temporarily halt work on unapproved data center proposals involving state-owned land until July 2027. Although this statewide pause does not apply to the private Hynix site, Governor Kotek supports local governments in pausing new data center developments. In response, the Party for Socialism and Liberation plans to address the Eugene City Council on September 14th, advocating for a moratorium on all new data center construction, citing concerns over energy and water consumption. The Eugene City Council is scheduled to hold a work session on data centers on December 14th. Oregon is noted as one of the top ten states for data centers due to factors like affordable land, accessible electricity, its location between Silicon Valley and Seattle, proximity to internet infrastructure, a cool climate, and historical tax incentives.