Hillsboro: Council Votes Tuesday on Data Center Caps That Would Leave Under 30 Acres, City Says

Hillsboro City Council is scheduled to take its final vote Tuesday, Oct. 20, on rules that would bar new data centers from most zones that allow them today. By the city’s count, new acreage caps would leave less than 30 acres for new standalone data centers in the two zones where they would still be allowed.

Ordinance 6521 (case CDCA-004-26) passed its first reading Oct. 6, a city news release posted Oct. 14 says. The version in the Oct. 20 council packet is marked “as amended.” It adds an end date for a school buffer, drops a rule on moving data center capacity between sites and adds a clause to protect the rest if one part is struck down.

• The vote: Tuesday, Oct. 20, 7 p.m., Civic Center Auditorium and Zoom. It is the second reading, item 7.2.
• Where: Data centers as a primary use would be prohibited in 10 of the 11 zones where they are permitted outright today. They would remain allowed, with caps, in the I-P (Industrial Park) and I-S (Industrial Sanctuary) zones.
• Caps: 215 acres in I-P and 310 acres in I-S. The Jackson East area keeps its 83-acre limit, and the Meek area stays off-limits to them as a primary use.
• Schools: No data center within 1,000 feet of a school, a rule that would expire Oct. 31, 2027.
• Moratorium: The city’s pause on applications for new and expanded data centers and battery storage ends Nov. 24 unless the council extends it.

About 30 acres, shown on the city’s own list

The city’s figure comes from Exhibit C, a list of 23 data center sites as of Aug. 19. It counts 203.17 acres in I-P and 354.29 acres in I-S, or 292.29 acres without Jackson East. Subtracting those totals from the proposed caps gives the room left.

Jackson East is handled separately. Exhibit C implies 62 acres there (354.29 minus 292.29, our calculation) against its 83-acre limit, but the packet does not say how much of that limit is still usable. Staff also note that acreage for sites still in review may change.

Adding all three caps gives 608 acres, which the release calls “10% of Hillsboro’s identified employment lands.” The city’s findings put that land at 6,210 acres, so the cap works out to 9.8% (our calculation).

Most of the listed land is already built

That inventory also shows how much is finished. By our count of Exhibit C, 16 sites totaling 346.48 acres are built. Another seven, totaling 223.77 acres, are in permitting or construction. That is about 39% of the 570.25 acres listed.

The largest site still in the pipeline is 62 acres at 2791 NE Huffman St., in I-S. One pipeline site falls outside both zones: 12.79 acres at 10500 NE Walker Rd., in the UC-MU zone. The list flags it as a nonconforming use, adding, “Data centers are no longer allowed in the UC-MU zone.”

Three changes since Oct. 6

The caps and the inventory are the same in both versions, but the amended ordinance differs from the first-reading text in three ways. First, the 1,000-foot school buffer, which also counts schools just outside city limits, now “sunsets on October 31, 2027.” The release says the council chose the 12-month limit and that buffers are expected to be reviewed in Phase II, after an environmental study now underway.

Second, the amended text drops section 12.40.145.D.2. That section would have let a company move data center capacity allowed as an accessory use, meaning one secondary to a site’s main business, to an affiliated site in an industrial zone. Written comments in the packet urged the council to remove it. The release says transfer rules will be reviewed in Phase II.

Third, a new severability section says that if any part is ruled invalid, the rest stands. The amended title also adds “SB 974,” but the packet does not explain the reference. The staff report attached to the item is still the Oct. 6 version, and its summary table still describes the dropped transfer rule.

Hearings, batteries and a notice error

The ordinance also changes who approves projects. New data centers would need a Type III review, a public hearing before the Planning & Zoning Hearings Board, with appeals to the council. The release says most projects were previously Type II, meaning staff could approve them.

Battery energy storage would be limited, as a primary use, to industrial zones with conditional use approval, at up to 12 gross acres per site. As an accessory use, it could take up to 30% of a site’s acreage, with some exceptions.

The process also hit a mapping error. The staff report says it was discovered Sept. 8 that hearing notices missed 34 properties in the SID I-P area, belonging to 19 owners. A corrected notice was mailed Sept. 9. An online survey drew 1,197 responses, and “only 12%” said data centers did not need limits.

If adopted, the ordinance takes effect 30 days after passage and the mayor’s approval. The release says the council “is expected to consider extending” the moratorium by six months at an upcoming meeting.

How to testify or watch

The meeting airs live on TVCTV Public Access Channel 30, TVCTV’s livestream and the city’s YouTube channel. Data centers are item 7.2, after a consent agenda that includes a lease extension for the Tanasbourne police precinct.

Speakers get three minutes. In person, fill out a yellow card and give it to the City Recorder. To speak on Zoom, email [email protected] or call 503-681-6269 by 3 p.m. on Oct. 20 with your name, phone, address, email and topic. Written testimony is accepted until the council makes its decision.