Hillsboro data center tax incentives spark scrutiny before statewide moratorium

Hillsboro residents are questioning the city’s handling of data center tax breaks after officials approved agreements that could extend exemptions decades into the future — just a month before a statewide moratorium on new incentives takes effect.

Frustration over transparency and concerns that the city was moving too aggressively to lock in long-term incentives surfaced during a city council meeting Tuesday, May 5. The scrutiny follows reporting by The Oregonian that Hillsboro recently approved a series of enterprise zone tax abatements for future data center investments, including one that could stretch into the 2050s.

City officials say the looming moratorium triggered a rush of applications from data center operators — specifically 17 applications across eight entities — and argue state law leaves local governments with limited discretion to deny projects that meet program requirements…

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