Molalla, OR. — The City of Molalla says it is not working with any property owner or developer to build a data center, responding to claims circulating as the city proceeds with its state-mandated urban growth boundary process.
In an Aug. 17 press release, Assistant City Manager Mac Corthell said social media posts have falsely suggested that the city is “bringing in a data center.”
The city said municipalities generally do not develop private property or recruit particular developments. Instead, city officials regulate proposed projects and oversee compliance with local and state standards.
“At this time, there is no property owner or data center developer engaged with the City of Molalla to obtain land or otherwise develop a data center,” the release stated.
Molalla acknowledged receiving one preliminary inquiry about 18 months ago from a prospective data center developer. Following a public records search, city officials estimated the inquiry occurred around February 2025 and concerned available land and utility capacity.
The city said it lacked sufficient water, sewer and electrical capacity, as well as enough available land, to support the proposed development. The inquiry ended without further action.
Officials also reported receiving inquiries about large industrial properties for mass timber and other manufacturing uses. Those discussions showed that Molalla lacked large industrial sites capable of accommodating developments that could provide substantial living-wage employment, according to the release.
The city said that finding contributed to its decision to seek at least one large industrial property through the ongoing urban growth boundary process. Officials did not identify a specific company or development connected to that effort.
A data center could still be proposed in Molalla in the future if a willing seller had appropriately zoned industrial property and sufficient water, sewer and electrical capacity were available. However, the city said it has received no additional data center inquiries beyond the one that ended approximately 18 months ago.
Residents seeking additional information about the urban growth boundary process were directed to the city’s planning website.
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