Hillsboro, OR. — Proposed regulations governing data centers and energy storage facilities are headed to the Hillsboro City Council following approval by the city’s Planning Commission.
The commission approved proposed amendments to Hillsboro’s Community Development Code during a public hearing on Sept. 9. The City Council is scheduled to consider the changes and accept public testimony during an Oct. 6 meeting.
The proposal represents the first phase of a two-part process intended to establish new rules for data centers and battery energy storage system facilities.
The initial amendments would define the two types of facilities and determine where they may be allowed, restricted or prohibited within Hillsboro. They would also establish limits on how close the facilities may be located to schools.
Other provisions would clarify when data centers and energy storage facilities may operate as accessory uses and address the transfer of development rights between affiliated properties.
The city plans to make the Planning Commission-approved code language available by Oct. 2 through the Oct. 6 City Council meeting agenda.
Hillsboro divided the code update into two phases to allow officials to enact initial land-use protections while conducting additional research on more detailed development requirements.
The first phase is scheduled for fall 2026 and focuses on definitions, permitted uses and location restrictions. City officials are seeking to complete the work during a 120-day moratorium on new data centers and energy storage facilities approved by the City Council on July 27.
Completing the first phase before the moratorium expires would leave basic regulations in place if the council does not extend the temporary prohibition.
The second phase, planned for winter and spring 2027, will examine development and design standards. Potential regulations could address building height, setbacks and buffers, green-building requirements and additional environmental protections.
City officials said more study and locally specific information are needed before those standards are adopted. Hillsboro is conducting an environmental and economic analysis of data centers to support the second phase and help ensure that any new requirements have an adequate factual and legal foundation.
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