Data Centers in Oregon: Hillsboro Weighs Growth Against Industrial Land Priorities
Hillsboro has become one of Oregon’s most established data center markets. Still, the city is taking a closer look at how those facilities fit into its industrial landscape as concerns grow over land use, infrastructure demand and the local economy.
Hillsboro puts the pause on new data centers
The Hillsboro City Council enacted a 120-day moratorium on July 27, 2026, on new or expanded data centers. The temporary pause gives the city time to examine where these facilities should be allowed, how they should be regulated and what community benefits should accompany future development.
The debate is particularly relevant in Hillsboro because its data center market differs from the hyperscale development driving much of the national conversation. Colocation facilities, which serve multiple customers from a shared facility, are the most common type of data center in the city. The facilities also operate within a broader technology and advanced manufacturing economy that includes semiconductor companies, biotechnology and other industrial users.
A data center market tied to technology
Hillsboro’s data center market developed alongside an established technology and semiconductor industry. The region’s fiber connectivity, electrical infrastructure and concentration of technology businesses have helped make it an attractive location for digital infrastructure.
That infrastructure also serves other industries
- According to the city, approximately 80% of Hillsboro data centers support technology, biotech, semiconductor and local government needs.
- The remainder supports cloud-based computing and telecommunications.
This distinction matters as the city plans future development. A colocation facility supporting multiple technology companies can have a different economic role from a hyperscale campus built around the computing needs of a single large customer.
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