Politics
Hillsboro proposal would reserve only 30 more acres for new data centers
Hillsboro’s City Council unanimously advanced zoning rules that would sharply limit land for new standalone data centers, after months of public pressure over the industry’s environmental effects and tax breaks. The council is scheduled to vote on the proposal Oct. 20.
Hillsboro is moving to limit future data center construction, advancing a proposal that would allow just 30 additional acres for new standalone facilities in a city that has long offered the industry favorable zoning and tax incentives.
The City Council voted unanimously Tuesday to move the ordinance forward. A final vote is scheduled for Oct. 20. The plan would also establish a 1,000-foot buffer between data centers and schools and restrict the size and locations of battery storage facilities, some of which serve data centers.
The proposal marks a shift for the Portland suburb, where data centers now occupy more than 430 acres. Another 140 acres are under construction or designated for development. Council President Rob Harris warned that without action, future projects could consume thousands of acres.
“I think this is really a step forward in a lot of ways,” Harris said.
Residents have pressed the city this year to address data centers’ energy and water demands, noise, emissions and effects on nearby farms and neighborhoods. Public opposition intensified in May, after operators sought 17 new tax incentives just before a one-year city moratorium on new data centers took effect. The incentives were structured in successive five-year periods, potentially extending for decades; the city approved them.
The scale of the public subsidies has also drawn scrutiny. Washington County records show Hillsboro data centers received $84 million in local property tax breaks last year. County figures list 284 employees at the facilities — about $296,000 in tax breaks per job for the year.
The ordinance is an initial step, council members said. The city may consider additional rules on building height and buffers around parks or natural areas after further study. Hillsboro could also revisit tax incentives, unless state lawmakers first impose new limits.
At Tuesday’s meeting, resident Britt Holloway urged the city to take a stronger position in negotiations with the industry and assess data centers’ effects on power demand, water use, noise, emissions, farms and neighborhoods.