La Pine Rejects Proposed Data Center Amid Public Outcry - The Source

The La Pine City Council in Oregon unanimously voted to reject a proposed industrial land sale for a data center project by Boxminer.io, following nearly five hours of public testimony and fierce community opposition. Residents raised concerns about the data center's potential drain on local water and energy resources, as well as impacts on quality of life, forming online groups and circulating petitions against the proposal. City Manager Geoff Wullschlager's report also questioned Boxminer.io's estimates for job creation and city revenue.

Despite Boxminer.io CEO Jeff Keller's assurances that the AI data center would use a closed-loop cooling system to conserve water and that Midstate Electric Cooperative confirmed ample power capacity without rate increases, the Council sided with public sentiment. The proposed 20,000-square-foot facility, initially planned for a 20-acre parcel in the La Pine Industrial Park, would have required approval from both the City Council and Deschutes County. The decision reflects a growing nationwide trend of communities opposing data center developments over resource and quality-of-life concerns. This rejection occurred days before a new state policy, enacted by the Oregon Legislature, paused property tax breaks for data centers under the Enterprise Zone Program, though Boxminer.io had stated it would forego such breaks.