How many data centers are in Hillsboro?

As of March 2026, there are 18 data center sites that are either constructed or under construction in Hillsboro, totaling approximately 429 total acres, equal to about 8% of Hillsboro’s North Industrial Area. These data centers often have tenants who may lease space and services from and have their own equipment located within the data centers. A data center site may contain one or multiple buildings depending on the design and function of the facility.

Why do we need data centers?

In the next five years, it’s estimated that consumers and businesses will generate twice as much data as all the data created over the past 10 years, according to Jones Lang LaSalle (2024).

Approximately 6 billion people, 74% of the global population, are online today. This represents an increase of 46% since 2010. 2.2 billion people are not yet connected to the internet, according to the International Telecommunication Union (2026).

On average, U.S. households have a total of 22 internet connected devices, according to Deloitte’s Connectivity and Mobility Trends Survey (2023).

The average monthly home internet use has increased from 150 GB in 2018 to more than 750 GB per household in 2025, according to Open Vault Broadband Insights Report (2025).

Many industries, including advanced manufacturing, computer electronics, biotechnology and others, increasingly rely on data processing and support from nearby data centers.

Data centers also serve as critical infrastructure for industries in Hillsboro like advanced manufacturing, biotechnology, healthcare, transportation, fintech, and education. A 2025 study by Jones Lang LaSalle found that 80% of the data centers in Hillsboro are supporting technology industries and development, with the remaining 20% supporting cloud-based computing (15%) and telecommunications (5%). Proximity to supporting data centers can also be very important.

What is the process for reviewing and approving proposals for data centers in Hillsboro?

Some of Hillsboro’s land use zones allow data centers. Other zones limit or prohibit them like the most recent industrially designated areas of the Jackson East and Meek Sub-Areas of North Hillsboro.

In most industrial zones, where data centers are allowed uses, this type of development would require a Type II land use application consisting of a public notice, an administrative decision, and the opportunity to appeal. In addition to land use review, new or retrofitted facilities would also require building permits and applicable utility permits.

What is the Enterprise Zone Program?

The Enterprise Zone Program was created by the State of Oregon to encourage recruitment and retention of businesses and jobs across the state. The program is administered by cities, ports, counties, or tribal governments, known as Zone Sponsors. These zones incentivize business investments by abating all local property tax for a certain number of years.

This program is one of the few incentives the City of Hillsboro has to grow and sustain our local economy.

• It allows a 100% property tax abatement for a 3-to-5-year period for eligible businesses within the designated enterprise zone on new investments like buildings and equipment.
  
  
• After the 3-to-5-year period is over, the investment is taxed and provides revenues to local jurisdictions.
  
  
• The program also funds many local workforce development and small business support programs.

The City of Hillsboro is required to processes Enterprise Zone applications in compliance with state law and local policy.

The rules in place at the time of application are the standards that must be used to determine whether to approve or deny an application.

City staff have no discretion to deny an application that meets the standards set forth in state law and local policy. By law, City staff must approve such applications.

The Hillsboro City Council establishes the local enterprise zone and policies, in coordination with other local taxing districts, and must be ultimately approved by the State of Oregon through its Oregon Business Development Department.

The Enterprise Zone was reauthorized last by the Hillsboro City Council in 2017, and the boundary was expanded in 2024.

The 2026 Oregon Legislature approved HB 4084 modifying the state enterprise zone laws to place a moratorium on data center applications starting in June 2026.

Data centers are one of the types of businesses that can qualify for tax abatement under the Enterprise Zone Program.

Eligible businesses are primarily firms that provide goods, products, or services to businesses or other organizations through, but not limited to:

• advanced manufacturing
• food processing
• information technology
• shipping
• assembly
• fabrication

More information can be found on the City’s Enterprise Zone Program webpage.

Why have Enterprise Zone applications for data centers recently increased in Hillsboro?

Since state legislation (HB 4084) passed to impose a moratorium on Enterprise Zone approvals for data centers in March 2026, Hillsboro has seen 17 Enterprise Zone applications for data centers.

Because the State-imposed moratorium begins on June 6, 2026, many data centers submitted their applications recently so that they could be reviewed prior to the moratorium effective date.

• All of the 17 applications received are for sites that had either already been purchased for future data center use (10 applications) or were already in operation as data centers (7).
• The applications span 8 companies at 11 sites.
  • Four of the sites are vacant and would be constructed in the future.
  • Seven of the sites are existing data center facilities that would be reinvested in.

Each application covers a period of 3 to 5 years. That is the maximum exemption period allowed. After the exemption period ends, the exempt assets must be taxed.

Buildings would be taxed permanently moving forward, and machinery and equipment must be taxed for at least one year before it is disposed, replaced, or relocated. The investments can receive the tax abatement for one 3-to-5-year period.

If a business makes additional new investments in buildings, equipment, and/or personal property, they could be eligible to apply for additional Enterprise Zone exemptions, provided they meet the program requirements in effect at the time of application. The same assets cannot be exempted twice. The incentive benefit is only realized by a company if/when they make the investment and would otherwise be taxed on it.

Given the approval process timeline, the City of Hillsboro does not anticipate any additional data center applications could be submitted after May 7, 2026, and be able to go through the approval process prior to the June 6, 2026, moratorium date, thereby creating a pause in new data center applications.

Who reviews Enterprise Zone applications?

Oregon law (ORS 285C.105) requires that local jurisdictions or sponsors appoint a local zone manager to manage the Enterprise Zone program including the processing of applications.

• Hillsboro redesignated its Enterprise Zone in 2017 and appointed the City Manager and their designee as the local zone manager. That role is assigned to the Economic Development team at the City, with its director filling the role of zone manager.
  
  
• When the director signs an agreement, they are doing this in an administrative capacity in their role of zone manager.

State law requires that applications which meet the minimum program requirements must be approved per ORS 285C.140.

Where is the Enterprise Zone in Hillsboro and when was it established?

Hillsboro established its Enterprise Zone program in 2006 and has two approved areas: North Industrial and Downtown & South Industrial.

• View a map of Hillsboro’s Enterprise Zone Areas

The North Industrial Area was most recently amended in 2025 to include additional parts of the Jackson East Area which was planned for industrial development in 2020.

The program requirements for applicants of Hillsboro’s Enterprise Zone, were last updated in 2017. Read the summary guidelines.

Local zone sponsors are responsible for applying for state designation, as well as creating, amending, managing, and seeking redesignation to maintain eligibility.

All of the Zones must periodically renew their state eligibility. The statewide Enterprise Zone Program is set to expire on June 30, 2032, while Hillsboro’s enterprise zone is currently scheduled to expire on June 30, 2028.

Why is some information redacted in Enterprise Zone Program applications?

Oregon law (ORS 285C.160) requires that the enterprise zone sponsor post the terms of an enterprise zone agreement on its website for 21 days prior to the agreement becoming effective.

The law also states that “The name and any confidential or proprietary information of the business firm may not be made public under this subsection.” This is the reason why the business name is redacted on these notices.

As a local zone sponsor, Hillsboro can create additional Enterprise Zone requirements. The Hillsboro City Council has elected to do that.

Some of the local requirements that the City of Hillsboro has enacted include:

• minimums for wage and benefits paid to employees
• annual summaries of locally procured goods and services
• a Community Service Fee, which is utilized for:
  • small business support
  • workforce development programs
  • scholarships for first-generation college students

This funding is contributed back to the City of Hillsboro by the company to provide community benefits like supporting local and countywide economic development efforts. It does not fund general services.

Companies receiving an exemption must submit a compliance letter to the City of Hillsboro annually addressing each of the local requirements.

Do data centers bring jobs & benefits to the community?

Data centers bring economic activity to the community and support a variety of short-term and long-term living-wage jobs including software engineers, computer scientists, cyber security professionals, electricians, and construction trades including builders, plumbers, electricians, and maintenance professionals.

In 2023, data centers in Oregon created 9,310 direct jobs and 38,380 indirect and induced jobs with more than $4.1 billion in labor income, according to PwC (2025).

Additionally, Community Service Fees paid by Enterprise Zone recipients help fund local workforce development and small business development activities, including:

• Financial support for approximately 4,648 first-generation and low-income college students through the Portland Community College Future Connect Program.
• Funding for more than 850 students in the Portland Community College Quick Start Program.
• Support for the Westside Pitch Fest, which provides dozens of early-stage entrepreneurs and emerging companies a platform for visibility, resources, and support.
• Development of the Hillsboro School District Youth Apprenticeship Program which supports numerous high school students.
• Creation of the Advanced Manufacturing Training and Education Collaborative of Hillsboro (AM-TECH) which is a workforce partnership between educators, workforce trainers, industry, and community organizations.
• Support for Centro de Prosperidad with Centro Cultural which provides hundreds of local businesses support and resources to grow in Hillsboro.
• Funding for Adelante Mujeres’ Cocinemos program provides a small business training course focused on the food industry.

These investments provide community members, especially those with greater economic prosperity needs, with resources, training, and career access support.

How do data centers get electricity? Will Hillsboro residents pay for power system upgrades to serve data centers?

In Hillsboro, power for data centers is primarily provided and monitored by Portland General Electric (PGE). The Bonneville Power Administration, PGE, and the City of Hillsboro coordinate closely to plan for new development in Hillsboro to prepare for future energy demands and infrastructure needs.

In 2025, the Oregon Legislature passed the “POWER Act” (HB 3546) that ensures big energy users, like data centers, pay for the additional demand they place on Oregon’s electric grid. The POWER Act established a special rate category for large users of electricity to ensure they cover their own costs, instead of shifting those costs onto households and small businesses. The Oregon Public Utility Commission is responsible for implementing and enforcing those requirements.

Are data centers using most of Hillsboro’s water?

No, based on 2025 data, data centers receive about 1.76% of Hillsboro’s total water demand. Hillsboro used about 6.3 Billion Gallons (BG) in 2025, with 3.2 BG used in total industrial processes. About 111 million gallons (MG) were used at data centers, or about 3.4% of total industrial demand. 

For reference, the combined 2025 water usage of all Hillsboro data centers (~14 sites*) does not even exceed the water usage for a solar panel producing company that operated in Hillsboro during the 2000/2010’s and has since gone out of business. That one industrial site used about 150 MG per year, compared to the 111 MG used by the 14 data center sites referenced above. Hillsboro currently has a treatment capacity of 41.7 Million Gallons per Day (MGD) but only peaks (highest usage day in a year) at around 30 MGD, so there is room for growth in all customer classes.

*A section of Hillsboro receives its water service through Tualatin Valley Water District. The Hillsboro Water Department does not have water demand numbers for those locations.

Do data centers pay less for water than residential customers?

No, data centers are classed as either commercial or industrial, which both pay higher base (fixed) and usage rates than typical residential customers. 

 *2026 Class Comparison for 5/8 meter using 8 ccf (6000 gallons), which represents typical single-family residential use.

Would more data centers in Hillsboro increase residential water rates?

No, water rates are designed so that all customers, including residential, commercial, and industrial users, pay their fair share based on how they use the City’s water system and how much water they use. 

Cost-of-Service studies are conducted about every five to six years to ensure that each of the customer classes are paying their fair share, so residential rates will not rise due to an increase of data centers. 

Residential meters (5/8”) pay a $21.94 monthly fixed charge and most customers’ water use falls in first-tier rate of $3.99 per ccf (748 gallons) up to 4 ccf, or the second-tier rate of $4.58 per ccf up to 8 ccf. Industrial users like data centers pay a $512.16/month fixed charge for a 2” meter and pay $5.17 per ccf (748 gallons) for usage.

Learn More

• Read more questions about data center water use in Hillsboro


• Fact Sheet | Data Center Water Use in Hillsboro


• FAQ | Data Center Water Use in Hillsboro

Council President Rob Harris requested information about data centers in the North Hillsboro Industrial Area as well as a City Council Work Session to discuss data centers and consider the option of placing a temporary, time-limited but renewable pause on new permitting for standalone data centers in the area.

Council President Harris also said the consideration of a pause should be initially aligned to expire with the issuance of a report from the Governor's Data Center Advisory Committee for "continuity and consistency."

The City Council expressed support for this and City Manager Robby Hammond said it would be scheduled.