On July 27, Hillsboro City Council approved a 120-day land use moratorium on applications for new and expanded data centers and Battery Energy Storage System (BESS) facilities. During the moratorium, the City of Hillsboro will conduct additional research, gather public input, consult technical experts, and consider possible updates to Hillsboro's Community Development Code.
The City has established an ambitious schedule to complete this work before the moratorium expires on November 24, 2026. To allow enough time for implementation of the planned actions, the City Council could extend the moratorium for an additional six months after the initial 120-day period.
Code Amendments, Research Studies & Tax Reform
The City has planned a two-phased approach to the work of re-examining where and how data and energy storage facilities are located, regulated, and taxed in Hillsboro.
Phase I: Summer & Fall 2026
- Initial Land Use Code Amendments Focused on Allowable Uses Adopted
- New Pre-Submittal Requirement for Data Centers to Confirm Utility Service Availability Implemented
- Environmental & Economic Analysis Initiated
Phase II: Winter & Spring 2027
- Additional Land Use Code Amendments Focused on Development & Design Standards Adopted
- Community Service Fee Policy Updated
- Local Enterprise Zone Policy Updated
- Implementation of State Recommendations & Changes Enacted
- Utility Affordability Program Explored
Moratorium & Code Amendment Timeline
Past Meetings & Work Sessions
Upcoming
- August 5: Public notice posted online and mailed to property owners in the following zones:
- August 12: Planning Commission Work Session (public comment not accepted)
- August 26: Planning Commission Public Hearing (public comment accepted)
- September 15: City Council first reading of proposed code amendments (public comment accepted)
- October 6: City Council second reading of proposed code amendments (public comment accepted)
- November 24: 120-day moratorium ends
Draft Code Amendment Intent & Availability
Based on current feedback from Hillsboro City Council, the goal of potential code amendments is to allow data and energy storage in strategic ways that benefit the community and support the businesses located in Hillsboro that provide industrial, manufacturing, and other living wage jobs.
Because of the limited time available, initial draft code amendments are expected to be released 24 hours before the Planning Commission work session on August 12. A link will be posted on the Data Centers in Hillsboro webpage.
To meet this schedule, the City has reassigned staff and made this effort a top priority. As a result, work on scheduled housing and other code amendment projects may move more slowly during the moratorium period.
Moratorium Need & Basis
The City Council enacted the moratorium to allow more time to gather and prepare information before making long-term decisions about where and how data centers and battery energy storage facilities should be allowed in Hillsboro.
These industries are rapidly evolving, and the City needs more time to weigh the best available science, data, and community input before establishing policies that will shape the City for decades to come.
The legal findings supporting the moratorium do not conclude that data centers or Battery Energy Storage Systems (BESS) are harmful to Hillsboro's environment or economy. Instead, they identify enough potential questions and concerns to justify taking time to study these issues.
During the moratorium, the City will conduct research focused specifically on Hillsboro's unique conditions. While examples from other communities helped identify topics to examine, they are not considered proof that the same impacts would exist here.
Stay Informed
Community members are encouraged to follow the review process and participate when opportunities for public input are available.
Questions?
Connect with our project team through our data centers contact form.
