Data center lag: Hillsboro makes little headway in possible regulations, moratorium
Hillsboro city councilors are exploring new regulations for data centers, including a possible moratorium and amendments to the city's development code. Residents have expressed concern over data center expansion and the process for approving tax abatements, leading to calls for increased transparency and stricter local rules. Any proposed changes are expected to take months to implement.
Hillsboro city councilors have initiated efforts to explore new regulations for data centers within the city, including a potential moratorium on future developments and significant amendments to the city’s development code. The directive came during a five-hour special work session on June 9, following a previous meeting that garnered extensive public testimony expressing concerns over data center expansion.
Among the ideas discussed by the council were establishing a distinct land-use category for data centers, implementing new development standards, and conducting environmental and economic impact studies related to the industry. Councilor Kipperlyn Sinclair specifically proposed an ordinance that would reclassify data centers, removing them as a primary permitted use in industrial zones unless adjoined by a larger manufacturing or commercial operation. Her proposal also included requirements for a minimum of 15 permanent full-time jobs per acre and additional public review and utility capacity assessments for larger facilities.
City staff, including Economic and Community Development Director Dan Dias, cautioned that the process for amending the development code could take 80 to 90 days, excluding public engagement. A land-use moratorium would require a public hearing and 45 days’ notice to the Oregon Department of Land Conservation and Development. Staff also noted that any applications submitted before new regulations are adopted would be processed under the current code.
This discussion follows Hillsboro's approval of 17 enterprise zone tax abatement applications from eight entities just before a state-imposed one-year moratorium on new data center tax exemptions, which took effect on June 6. This influx sparked criticism from residents and councilors, including Olivia Alcaire, who questioned the transparency and speed of the approval process. City Manager Robby Hammond acknowledged the concerns, committing to explore ways to improve public notice and council communication regarding future data center proposals.