New Data & Energy Code heads to Council & the Two-Phased Approach

The Hillsboro Planning Commission approved proposed changes to the Community Development Code at a public hearing on September 9. The potential code amendment will head to the Hillsboro City Council for consideration at its October 6 meeting.

The proposed code changes focus on the basic rules for data centers and energy storage facilities, including:

• Definitions: Clearly define data centers and energy storage facilities.

• Zone restrictions: Identify where these facilities will be allowed, limited, or prohibited in Hillsboro.

• School buffers: Establish limits related to how close these facilities can be located to schools.

• Accessory use: Clarify when and how data centers or energy storage facilities may be allowed as an accessory use.

• Transfer rights: Address when and how development rights may be transferred between affiliated properties.

City Council will accept public testimony on the proposed code amendments as part of a public hearing at its October 6 meeting. The code language approved by the Planning Commission will be available for review by Friday, October 2 and linked in the agenda for the City Council October 6 meeting agenda.

This is Phase I of a two-phased approach to updating Hillsboro's Community Development Code related to data and energy storage.

Why a Two-Phased Approach?

The City is taking a two-phased approach to ensure its rules for data and energy storage facilities are effective and legally sound.

Phase I - Fall 2026: Definitions & Use Allowances

This phase focuses on basic rules including defining these uses and deciding where they can be allowed, limited, or prohibited. Completing this work during the 120-day moratorium on data and energy storage facilities enacted by Hillsboro City Council on July 27 helps the City put key protections in place if the moratorium is not extended.

Phase II - Winter/Spring 2027: Development & Design Standards

The second phase will focus on how these facilities are designed and what additional rules should apply. This could include building height, buffers, green building requirements, and other environmental protections. The City needs to complete studies and gather local information before adopting these rules. This evidence will help ensure the new standards are based on facts and can withstand legal challenges.

See a complete timeline and read more about Data Centers in Hillsboro and the Environmental & Economic Analysis that will help inform and legally support any code amendments proposed in Phase II.

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