Hillsboro data center tax incentives spark scrutiny before statewide moratorium

Hillsboro, Oregon, residents are questioning the city's approval of multiple long-term data center tax abatements, some extending into the 2050s, shortly before a statewide moratorium on new tax incentives takes effect. The scrutiny, which intensified during a May 5 city council meeting, follows reporting by The Oregonian about the city's recent agreements, including one for future data center investments that lists NTT Global Data Centers as the company involved. City officials, including Hillsboro Economic and Community Development Director Dan Dias, explained that the impending statewide moratorium, enacted by the Oregon Legislature via House Bill 4084, led to a rush of 17 applications from eight entities. Dias stated that state law limits the city's discretion to deny projects meeting program requirements. However, residents like Paige Mendicino accused the city of a "fire sale" to lock in decades of giveaways for companies such as NVIDIA, Adobe, and CoreWeave, particularly as Governor Tina Kotek has expressed concerns about the industry's growth and its impact on water and power resources. Mendicino highlighted that some data centers, like one connected to TikTok, receive substantial tax breaks for minimal job creation, questioning the benefit to the community. Dias defended the enterprise zone program as a key tool for industrial investment, noting that a community service fee from the abatements funds workforce development. He also affirmed that applications are processed at a consistent pace, not expedited, to avoid potential challenges. Concerns about data center expansion in Hillsboro are ongoing. City Council President Rob Harris suggested a temporary one-year pause on new approvals, with council discussion scheduled for June. Councilor Kipperlyn Sinclair also initiated a petition for a moratorium as part of her campaign for the Washington County Board of Commissioners. A city council work session on data centers and development pauses is set for June 5.