Hillsboro puts 4-month pause on building, expanding data centers in the city

The Hillsboro City Council has unanimously approved a 120-day moratorium on the construction and expansion of data centers and battery energy storage systems within the city. The decision, made at a special meeting on July 27, means no new proposals will be accepted, processed, or approved until at least November 24. The moratorium was enacted under a state law allowing cities to pause developments if existing ordinances are deemed insufficient to prevent public harm, and comes amid months of public outcry over large tech developments.

Council members acknowledged that 120 days may not be sufficient for thorough research, with Councilor Olivia Alcaire suggesting the need for a commission to advise on future regulations. Council President Rob Harris stated the short notice for the hearing was intentional to prevent a surge of applications from data center operators, similar to what occurred before a previous statewide moratorium on data center tax incentives.

This latest pause follows a recent 180-day halt on new Strategic Investment Program agreements for standalone data centers, closing a potential loophole in tax breaks. The council is also directing staff to explore amendments to the city's development code, including limiting where data centers can be built, reclassifying them by function, and updating design standards to include potential height limits and sustainability requirements. A public hearing with the Hillsboro Planning Commission is scheduled for August 26, with potential city council adoption of amendments as early as October 6.