The Hillsboro City Council reached consensus on directing staff to explore several potential actions during a special work session on Tuesday, June 9 regarding data center development and Hillsboro’s Enterprise Zone incentive program.

The guidance to City staff to research and recommend policy options remains subject to further Council review and approval.  

The areas prioritized by the City Council for evaluation include:  

Potential Land Use Code Amendments 

• Establish a new use category and definition for data centers, which are currently classified as Industrial Services.
  
  
• Explore additional development standards for new data center facilities.
  
  
• Require a more detailed review of utility and environmental impacts of new data center development through the permitting process.
  
  
• Refine zoning and narrow where within the city data centers are allowed.
  
  
• Examine the steps required to initiate a temporary land use moratorium. 

Potential Enterprise Zone Changes 

• Create options for updating the Community Service Fee (CSF) policy around budgeting, programming, and allocation of CSF funding.
  
  
• Evaluate using the CSF to create a utility affordability fund that would help households below 110% Area Median Income with utility assistance.
  
  
• Organize points to inform a state legislative lobbying position around proposed changes to:
   
  • Current state limitations on uses of the CSF.
    
    
  • State Enterprise Zone requirements, including wage thresholds, application review and approval processes, and creating limitations for phased applications/awards.

Requested Informational Reports

• Conduct studies to create informational reports on the environmental and economic impacts of data centers in Hillsboro. 

City of Hillsboro staff will be working to deliver the requested information as quickly as possible. Updates will be provided on the Data Centers in Hillsboro webpage and shared through the City’s Happening in Hillsboro email newsletter.