Hillsboro residents get their first chance to weigh in Wednesday, Aug. 26, on proposed zoning rules that would permanently restrict where data centers can be built in the city. Critics say the draft code contains loopholes that could let AI computing facilities dodge the new limits.
The Hillsboro Planning Commission hearing on Draft Order No. 8502 begins at 6 p.m. at the Civic Center, 150 E. Main St., and is also accessible via Zoom. It is the first public forum on code amendments developed during the city's 120-day moratorium on new data center construction.
What Phase 1 would do
Under the proposed amendments, standalone data centers would be limited to two zones: Industrial Park (I-P) and Industrial Sanctuary (I-S), both concentrated in North Hillsboro near the airport and along NE Evergreen Road and Brookwood Parkway. Data centers are currently allowed in all industrial zones, one commercial zone and three mixed-use zones, according to city survey materials.
The draft also sets acreage caps: 215 total acres in I-P and 310 in I-S. But city data shows roughly 203 acres in I-P and 293 in I-S are already approved for data center development, leaving only about 12 and 17 additional acres available in each zone.
Critics see loopholes
Community advocates argue the caps simply ratify the existing footprint. Adding 83 acres already permitted in the Jackson East area, the total locked-in data center acreage would reach roughly 608 acres, according to an analysis published by the Hillsboro Herald.
Three provisions in the draft have drawn particular scrutiny:
The "Data Storage" definition. The code uses the term "Data Storage Facility," language drawn from a state tax-moratorium rule. Critics contend AI compute facilities could sidestep restrictions by classifying as "Advanced Manufacturing" or "High-Tech R&D" because the definition lacks physical triggers like contracted megawatts or rack density. Hillsboro City Councilor Kipperlyn Sinclair flagged this concern in a July 13 memo to the city: "Data Storage is a limited term and does not cover what the industry is doing — changing the name to AI Computing, AI Compute, AI Factories, etc."
The 30% accessory-use provision. Proposed Section 12.10.370 would allow data centers as an accessory use on industrial sites up to 30% of gross land acreage. Critics note that on a 50-acre site, that equals a 15-acre footprint with no height or floor-area limits in Phase 1.
Off-site capacity transfer. Section 12.10.370(4) would let data storage capacity permitted as an accessory use be transferred to another site, so long as it serves the property owner's enterprise functions. Critics say the provision includes no receiving-zone restrictions, distance limits or auditing standards.
What's deferred
Phase 1 does not address school and park buffers, wetland setbacks, noise controls, building-height limits for high-density facilities, heat-island standards or oversight of chemical coolants. Those protections are slated for Phase 2 in winter and spring 2027. As we reported Aug. 25, one proposed data center would sit less than 200 feet from Liberty High School.
What happens next
The Planning Commission's recommendation will go to City Council for a first reading Tuesday, Sept. 15, with a second reading and possible adoption Tuesday, Oct. 6, according to the city's timeline. The 120-day moratorium expires Nov. 24.
A community survey on the proposed amendments is open through Sunday, Sept. 6, at engage.hillsboro-oregon.gov/data-centers.
Meanwhile, Washington County Commissioner Nafisa Fai proposed her own temporary pause on data center permitting countywide on Tuesday, Aug. 25, as we reported that day.
Rachel Marble, the city's code and policy project manager, is the staff contact for the hearing. Written testimony can also be submitted through the city's online portal.
