The city of Hillsboro, Oregon has placed a temporary halt on new data center and battery energy storage system developments, with the City Council voting at a special meeting on Monday, July 27 to enact a land use moratorium that will last at least 120 days.

What the Moratorium Covers

The moratorium prohibits the city from accepting land use applications for new or expanded data centers and battery energy storage system, or BESS, facilities proposed as a primary use.

The resolution adopted by the City Council also places limits on accessory use of such facilities, capping it at less than 20 percent of the total square footage of structures on a site, less than 20 percent of original construction value, or less than 20 percent or 20 megawatts of the total contracted or available electrical service capacity.

Projects that had already submitted applications before the moratorium took effect may continue to move forward through the development process. The restrictions apply only to new or expanded proposals filed after the moratorium's enactment.

Rationale Behind the Council's Decision

The City Council's action follows several weeks of public discussion and deliberation among council members. According to the city, council members reviewed information about the rapidly evolving data center industry, considered potential regulatory approaches, and ultimately reached consensus that additional time was needed to evaluate future regulations in a thoughtful manner.

Mayor Beach Pace framed the decision as a response to community concerns.

"The Hillsboro City Council has heard the questions and concerns from our community about data centers in Hillsboro," Pace said.

"This temporary moratorium gives us the opportunity to thoughtfully develop regulations that balance innovation, economic opportunity, and the quality of life our community values."

During the moratorium period, city staff will continue researching the economic and environmental impacts of data centers and energy storage facilities. That research will feed into recommendations for where and how these uses should be permitted in Hillsboro going forward.

Potential Duration and Next Steps

The initial moratorium period runs for 120 days. After that window closes, the City Council has the option to extend the moratorium for an additional six months.

The city has indicated that additional opportunities for public feedback will be made available as it develops and considers potential updates to its Community Development Code.

The stated purpose of the pause is to give the council time to evaluate how data centers and battery storage facilities fit into Hillsboro's long-term land use planning framework.

City staff will develop recommendations for updating the Community Development Code to reflect community priorities before any new applications are entertained.

Distinction From State-Level Action

Hillsboro officials were careful to draw a line between their local action and a separate moratorium enacted at the state level.

The State of Oregon has its own temporary moratorium in place, but that measure targets Enterprise Zone agreements for data centers and is focused on tax incentives.

Hillsboro's moratorium, by contrast, is exclusively a land use planning measure and does not address tax policy.

The two actions operate independently of one another.

Context for Hillsboro

Hillsboro, located in Washington County in the Portland metropolitan area, has emerged as a significant hub for technology infrastructure in the Pacific Northwest.

The city's existing base of semiconductor manufacturing and technology industry presence has made it an attractive location for data center development in recent years.

The surge of interest in data center construction has prompted community questions about the long-term implications of such facilities for land use, energy consumption, and neighborhood character.

The moratorium represents the most concrete regulatory step the city has taken to date in response to those concerns.

By pausing new applications while city staff conduct research and develop policy recommendations, the council is signaling that it intends to build a more structured regulatory framework before approving additional large-scale facilities of this type.

The city directed residents and stakeholders seeking more information to its dedicated Data Centers webpage, where it said it would post ongoing updates and answers to community questions as the process unfolds.