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Home Featured Story

Data Centers Expand Again In Hillsboro, Oregon As NTT Acquires Massive Expansion Capacity

No End In Site To Hillsboro, Oregon's Data Center Footprint

dirkknudsen@gmail.combydirkknudsen@gmail.com
May 3, 2026
in Featured Story, Business, City Council, Government
16
Oregon’s Enterprise Zone Waives Millions In Costs To Hillsboro Data Centers

QTS Datav Centers Hillsboro Oregon - Hillsboro Herald Photo

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NTT Global Data Centers is significantly expanding its presence in Hillsboro, Oregon. In addition to its existing campus at 4050 NE Evergreen Road, the company has recently acquired new land in the area to support further growth. This expansion will add an additional 216 megawatts (MW) of capacity, bringing NTT’s total planned capacity in Hillsboro to 354 MW.

The new site is strategically located within the Pacific Northwest technology corridor, offering direct connectivity to Asia via NTTโ€™s Subsea Connect network. This positions Hillsboro as a key hub for enterprises requiring scalable, AI-ready infrastructure to support high-performance workloads and data-intensive applications.

Data Centers rooftop cooling units in Hillsboro, Oregon use massive amount of power and water. Hillsboro Herald Photo

NTT’s expansion in Hillsboro is part of a broader initiative, with the company investing over $10 billion through 2027 to enhance its global data center footprint across North America, Europe, and Asia.

While the exact address of the newly acquired land has not been publicly disclosed, it is expected to be in proximity to NTT’s existing facilities, reinforcing Hillsboro’s status as a rapidly growing data center market.Yahoo Financeย  The Herald has previously released news of a massive footprint going in on the old Vanderzanden Farm off of Jackson School Road- we predict tha a a project this big will be on that property, but it could be the land heading North up to Helvetia, East of Helvetia Road.

Here are site-specific reasons as to why Hillsboro is being targeted for Data Center expansions:ย ย 

According to several reports that we have researched, including a recent article by https://www.datacenterfrontier.com/special-reports/article/11428919/price-of-power-positions-portland-for-data-center-developmentย  the reasons to come to Hillsboro are many.ย  In fact, a case can be made that if the land supply lasts (and it won’t), that every possible acre of land in the booming city in the Silicon Forest will be taken up by Data Centers within 24 months.

Here are the reasons:

Connectivity

  • Extensive fiber network in Portland and suburbs (providers: Zayo, XO Communications, Windstream, CenturyLink, Integra).

  • Major long-haul routes connect Vancouver to San Diego, passing through Portland.

  • Gigabit Ethernet is available downtown via CenturyLink.

  • International connectivity via submarine cables to Australia, New Zealand, Japan, China, and South Korea.

  • Recent addition: Hawaiki Submarine Cable (Portlandโ€“Hawaiiโ€“Australia), supported by Amazon, landed at Pacific City and was connected via a dark fiber ring to Hillsboro.

https://www.submarinecablemap.com/landing-point/hillsboro-or-united-states See this link for total interactive map courtesy of SubmarineCableMap Data Centers

Power

  • Low electricity costs (5โ€“6 cents/kWh), cheaper than California markets; competitive with Seattle, slightly higher than Quincy.

  • Primary provider: Portland General Electric (PGE), offering diverse energy sources including significant hydroelectric generation.

  • Intelโ€™s investments since 1974 helped develop Hillsboroโ€™s robust electric infrastructure.

  • PGE maintains three highly reliable substations in Hillsboro’s industrial area, ensuring full redundancy.

Hazard Risk

  • Relatively stable climate; low risk for storms, hurricanes, or tornados.

  • Moderate earthquake risk, fewer damaging events compared to Seattle and California; historically minor incidents.

  • Small volcanic risk: Four volcanos located within 50 miles of Portland.

Economic Development and Incentives

  • No sales tax in Oregon; substantial property tax exemptions in designated “Enterprise Zones” (Hillsboro, Beaverton, The Dalles).

  • Ranked 2nd nationally by CBRE for tax incentives, taxes average 2.7% of total data center project cost (national average: 8.7%).

  • Major tax savings for data centers (e.g., Hillsboro: $3.1M in 2019, $5.4M in 2018), fueling data center growth.

We will continue to document the transition of our valley from jobs rich employers like Intel, to job deserts like the Data Center plains covering North Hillsboro.ย  The eventual transition will remove jobs in the thousands and replace them with empty football stadium sized buildings.ย  A lot to think about if you live in Hillsboro or Western Washington County.


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Comments 16

  1. Arcadia says:
    1 year ago

    I’d love to see these huge companies invest in solar power and run their facilities with it.

    Reply
    • dirkknudsen@gmail.com says:
      1 year ago

      In Oregon, it can never work. A 200 MW facility, Oregon’s climate, the massive damage to the environemnt upfront to build the solar systems, and the limited lifespan of the systems, make it a no go. Here are some stats:

      Summary of Revised Impacts for Oregon (30-year outlook):
      Factor Adjusted Amount (Oregon)
      Solar System Capacity 1,348 MW
      Annual Energy Generation 1,752,000 MWh/year
      Land Area Required ~8,088 acres (~12.6 sq miles)
      Financial Cost ~$1.35 billion
      Panel Lifespan ~30 years (with reduced output ~80%)
      Realistic Carbon Footprint Initial 2.5+ million metric tons COโ‚‚ (higher due to extra panels)

      Reply
    • Devon Laws says:
      1 year ago

      Nuclear is the future for modern power requirements.

      Reply
  2. Jean K says:
    1 year ago

    Between the cheap water/electricity deals offered to these centers and the unmatched environmental advantages it seems like horrible negotiating that on top of all of that we are placing our tax burden on individuals and small businesses instead of these massively lucrative industries. Losing our jobs, losing our clean air, losing our income.

    Reply
  3. Jim boicourt says:
    1 year ago

    What is the value to the community, if any, for all these data crnters

    Reply
    • Aaron Crozier says:
      1 year ago

      None usually, and Iโ€™ve heard of many times where data centers will buy out whole neighbor hoods they think are perfect for their new location and force all the people in that neighborhood out. It happened in Hillsboro to one of my friends in college.

      Reply
    • Jason Hinton says:
      1 year ago

      More property tax revenue and jobs than the seed farm it replaced

      Reply
      • dirkknudsen@gmail.com says:
        1 year ago

        If that was all tha mattered? Sure- pave over the whole God Damn state! Wheee – MAGA rules— ;)

        Reply
  4. JohnM says:
    1 year ago

    I think this article is misleading. It states, “This expansion will add an additional 216 megawatts (MW) of capacity.” What they actually mean is an additional 216 megawatts of electrical demand on PGE’s generating capacity.

    Among the reasons for locating there:
    – Low electricity costs (5โ€“6 cents/kWh), cheaper than California markets; competitive with Seattle

    That’s literally less than HALF what residential users pay. And when PGE needs to raise rates because because they need to increase generating capacity or they need to purchase electricity from the commodity market to make up for shortfalls, guess who’s rates will go up?

    This is the typical “lower prices for bulk users to encourage consumption”. But that’s not how this should work. Generally with a scarce resource you charge MORE for excessive use to discourage consumption and encourage conservation.

    Reply
  5. Richard Wilker says:
    1 year ago

    How come thay get cheaper rates than normal should be same as house rates

    Reply
  6. Vince says:
    1 year ago

    Hereโ€™s a crazy idea for PGE: why not work to provide dependable power to residential customers before courting data centers? Iโ€™m at the point that when thereโ€™s a storm, especially in the winter, I come to expect my power will go out.

    Reply
  7. Kathie says:
    1 year ago

    Why arenโ€™t homeowners screaming about how the value of their homes in nearby neighborhoods are going to be affected? Who wants to live next door to this? Our city government has thrown us under the bus. These huge ugly concrete blocks have contributed nothing to the community except higher utilities and more frequent blackouts. Thanks for nothing Hillsboro-Oregon.gov

    Reply
    • Adam says:
      1 year ago

      Most of the stuff being built is not next to homes. Hillsboro has some pretty strict, possibly too strict, zoning laws.

      Reply
      • Aaron Crozier says:
        1 year ago

        Ya instead they remove whole communities. It happened to a freind when a data center liked the location of his community.

        Reply
      • Jason Flint says:
        1 year ago

        โ€œPossibly too strictโ€: Yes, because plunking data centers right next to residential is dynamite urban planning.

        Reply
  8. Amanda Nelson says:
    1 year ago

    Horrible and ugly. Ruining Hillsboro and taking our beautiful scenery and farm land. I

    Reply

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