Hillsboro Pauses New Data Centers for 120 Days as City Reviews Land Use Rules

HILLSBORO, Ore. — At a special meeting on Monday, the Hillsboro City Council voted to enact a 120-day temporary land use moratorium on data center and battery energy storage system (BESS) developments.

Following several weeks of public discussion and Council deliberation. Council members reviewed information about the data center industry, considered potential approaches, and reached consensus that additional time is needed to evaluate future regulations.

The City Council’s moratorium resolution limits accessory use to less than 20% of the total square footage of structures on a site, less than 20% of original construction value, or less than 20% or 20 megawatts of the total contracted or available electrical service capacity.

The temporary moratorium gives the City Council time to evaluate how these facilities fit into Hillsboro’s long-term land use planning and to consider potential updates to the  Community Development Code.

The moratorium does not apply to land use applications for new or expanded data centers and BESS facilities proposed as a primary use- these will not be accepted. Projects with applications submitted before the moratorium may continue to develop.

After the initial 120-day period, the City Council may extend the moratorium for an additional six months. The resolution is separate from the State of Oregon’s temporary moratorium on Enterprise Zone agreements for data centers.

The state’s legislation addresses tax incentives while Hillsboro’s temporary moratorium focuses solely on land use planning.