In Oregon suburb, data center boom spurs protests, lawsuit
A lawsuit has been filed by the land-use nonprofit 1000 Friends of Oregon against Hillsboro, Washington County, and several tech companies, challenging the approval of 17 new data centers due to inadequate public notice and tax breaks. This legal action is part of broader local opposition, including protests and political efforts, against the rapid data center expansion in the region. Recently, Hillsboro approved new data center requirements and a 180-day pause on new tax break agreements.
In Hillsboro, Oregon, a hub known as Silicon Forest, a significant backlash is brewing against the rapid expansion of data centers. The land-use nonprofit 1000 Friends of Oregon, joined by a city council member, a school board member, local farmers, and an environmental group, has filed a lawsuit against the City of Hillsboro, Washington County, and tech giants Adobe, CoreWeave, Dropbox, Flexential, and Nvidia. The suit challenges the approval of 17 new data centers, alleging they were greenlit without adequate public notice and benefited from decades-old state tax breaks, which cost local services millions.
Opposition stems from various concerns, including the loss of the Willamette Valley's fertile agricultural land, the strain on public services like schools and fire departments due to diverted tax revenue, and rising electricity bills for residents. Protesters regularly gather at the historic Shute-Meierjurgen Farmstead, which is now surrounded by data centers, symbolizing the encroachment of tech development on rural heritage. Critics, like farmer Aaron Nichols and school board member Tammy Carpenter, argue that data centers consume land without adequately contributing to the community, employ few workers, and receive undue tax exemptions.
Local politics are heavily influenced by the data center debate. Councilmember Kipperlyn Sinclair advocates for stricter Type 3 zoning processes requiring public hearings and council votes, instead of the current administrative Type 2 approvals. Tammy Carpenter is running for Oregon House District 27 on a platform that includes a moratorium on data centers. A contentious City Council meeting in June saw public outrage directed at Mayor Beach Pace and Councilmember Cristian Salgado, who was later censured for mocking residents during public comment.
Amid the ongoing protests and legal battle, the Hillsboro City Council has taken some action. In July, it unanimously approved new requirements for data centers, including mandatory public hearings for future projects, and enacted a 180-day pause on new agreements under the state's Strategic Investment Program for tax breaks. These developments suggest a potential shift in the local approach to data center development, with residents becoming more organized and active in shaping their community's future.