The Real Story – A Column
HILLSBORO, OR — The Hillsboro Herald has followed up on yesterday’s news investigation into recently executed Enterprise Zone (EZ) agreements, revealing that the City of Hillsboro has committed to property tax exemptions for the data center industry that stretch into the next quarter-century. By utilizing a “rolling” contract strategy, some facilities, including those operated by NTT Global Data Centers, have secured a tax-free status that won’t expire until 2051.
These findings follow a recent report by investigative journalist Mike Rogaway, The Oregonian/OregonLive, which detailed how the “Silicon Forest” has become a playground for massive industrial subsidies that critics say leave residential taxpayers holding the bag for infrastructure costs. Last night, things boiled over at City Hall as the news spread across the valley.
Who Did This To Hillsboro and Its Residents?
The Hillsboro City Council meeting last night saw serious anger and community outrage, and rightfully so. The first-ever data center Moratorium petition in the State started here last month and has grown to 3,500 signatures. Two weeks ago, Council President Rob Harris joined Councilwoman Kipperlyn Sinclair’s moratorium call, and it looked like Hillsboro’s out-of-control data center issues might be calming down. No such luck. Rogaway’s article revealed that Economic Development Director Dan Dias, known for his aggressive deal-making behind closed doors, has helped multiple Data Centers and AI Compute Centers secure massive new deals before Governor Kotek’s moratorium on these massive Tax giveaways.
Dias has allowed and helped these Data Centers raid public property tax revenues for decades to come, right before the deadline. Community leaders we have talked to are looking for full disclosure and Transparency. The Herald has requested that City Manager Robby Hammond immediately release the full list and all documents for these deals. Not doing so will just destroy what little public trust is left. We will report here and online if and when he provides those records.
Voices of many residents boiled over, including local farmer, father, and community activist Jacob Roloff. In his thoughtful and composed testimony last night, he called for Dias to be removed from his perch at City Hall. Roloff went on to indicate that Mayor Beach Pace should be recalled and replaced. He criticized the City for giving away decades of property tax revenues, which will directly affect his child and family, as well as everyone else. He was one of many, including me, who spoke on the horrible optics and outcomes of these actions.
The “Rolling” Strategy
The Herald reviewed twelve unique agreements executed between March and April 2026. The most aggressive maneuvering is found at the 6000 NW Jackson School Road campus, which is being developed by NTT Global Data Centers. Records show the City signed six consecutive five-year contracts (HIL11-A through HIL11-F) on a single day: April 27, 2026. By staggering the start dates of these contracts decades into the future, the City has effectively bypassed the standard five-year limit of the Enterprise Zone program, ensuring the campus remains shielded from property taxes for the next 25 years.
Subsidizing the “AI Factory”
The latest round of contracts also signals a pivot toward the booming Artificial Intelligence sector. Agreements for facilities on NE Starr Boulevard (STACK Infrastructure) and NE Schaaf Street (Digital Realty) explicitly define their projects as “AI GPU Cloud Refreshes.” The financial disparity in these “AI Factory” deals is staggering. Have a look at this table, which the Herald generated after reviewing the information we can find online. These 12 are all under the 21-day review, but it is unclear if anything can be done to stop the process, which was the sentiment of the crowd in Hillsboro last night. Social media is boiling over, and that anger appears to be rising as the hours go by.
| Address | Owner | Project | Exemption Period | Unique Terms & Notes |
|---|---|---|---|---|
| 4705 NE 30th Ave | Aligned Data Centers | Buildout | 2027 – 2031 | Standard Tier 2. Mandatory First Source Hiring Agreement with Worksource Oregon. |
| 4735 NE Starr Blvd | STACK Infrastructure | AI/GPU Refresh | 2030 – 2036 | Explicit AI focus. $250k unit cost for GPUs. Abatement per job >$136k. |
| 4915 NE Starr Blvd | STACK Infrastructure | AI/GPU Refresh | 2030 – 2036 | Tax Lot 1N2210002202. Identical AI language as 4735 Starr Blvd. |
| 5870 NE Schaaf St | Digital Realty | AI/GPU Refresh | 2031 – 2037 | Abatement: $726k+ per job. Local procurement reporting clause included. |
| 3935 NE Aloclek Dr | Flexential | Services | 2033 – 2037 | Standard Tier 2 CSF. Focus on machinery and real property. |
| 4455 NE Dawson Creek Dr | Flexential | Refresh | 2026 – 2032 | Unique Split: 5 yrs Real Property/Machinery, 4 yrs Personal Property Assets. |
| 6000 NW Jackson School Rd (Link A) | NTT Global | Colocation | 2036 – 2041 | Link 1 of rolling 25-year chain. Locks in long-term rates. |
| 6000 NW Jackson School Rd (Link B) | NTT Global | Colocation | 2038 – 2043 | Link 2 of rolling chain. Staggered start. |
| 6000 NW Jackson School Rd (Link C) | NTT Global | Colocation | 2040 – 2045 | Link 3 of rolling chain. Part of long-term strategic investment. |
| 6000 NW Jackson School Rd (Link D) | NTT Global | Colocation | 2042 – 2047 | Link 4 of rolling chain. Baseline employment baseline requirements. |
| 6000 NW Jackson School Rd (Link E) | NTT Global | Colocation | 2044 – 2049 | Link 5 of rolling chain. 15% School Support Fee in Y4-5. |
| 6000 NW Jackson School Rd (Link F) | NTT Global | Colocation | 2046 – 2051 | Final Link in 25-year chain. Secures tax-free status through 2051. |
- The Schaaf Street Project- Digital Realty: Calculated to receive $726,598 in tax abatements for every job created.
- The Starr Boulevard Project- STACK INFRASTRUCTURE: Slated for over $136,000 in abatements per job.
These facilities primarily house specialized GPU hardware, with units costing upwards of $250,000 each. While the hardware is high-value, the job creation remains low, prompting questions about whether these deals meet the “public benefit” requirements of Oregon state law.
Legal “Effective Date” Loophole?
Under ORS 285C.163, these tax-break agreements are legally ineffective until 21 days after the terms have been publicly posted on the City’s website. Every 2026 contract reviewed by the Herald includes this mandatory “Effective Date” clause. If the City failed to provide this 21-day public cooling-off period for each specific agreement, the validity of these multi-million dollar “deals” could be legally challenged.
Here is a MAP of the Data Centers receiving new Tax Deals prepared by the Herald- many are now getting a second round of Tax giveaways- this will take tens of Millions of property tax dollars away from our schools, the county, PCC, parks, and the list goes on.
Here is the Hillsboro Herald’s definitive map of all Data Centers, power plants, pending projects, BESS Batteries, and other energy-related infrastructure now dominating the North Hillsboro landscape.
Infrastructure Strain
As these data centers expand, the strain on local utilities continues to grow. These facilities are the primary drivers behind massive regional projects, including the $1.6 billion Willamette Water Supply Program and significant power grid upgrades. While the data centers enjoy decades of tax-free operation, residential ratepayers are seeing their utility bills climb to fund the very infrastructure these “AI Factories” require.
This move by Dias is wrong. It is unprecedented, and it should be stopped. It calls for a review of his office, his staff, and all of their actions. An independent outside auditor needs to be brought in, and it needs to happen now. Because these data center tax deals do not benefit the State of Oregon, the County/Schools/Parks, and the people of Hillsboro in general, the motivations for this are seriously in question. The Herald will be all over this story, and those that will come out of it.
RESOURCES:
Interactive Map: Hillsboro Data Center Tax Breaks (Address-specific details on all 12 deals)
You can see the individual applications that are in the 21 Day Public Notice period by clicking the following link: https://www.hillsboro-oregon.gov/our-city/departments/economic-development/choose-hillsboro/enterprise-zone-program
About five years ago, Dias and then-mayor Callaway asserted that the city was rolling back the exact kind of incentives being employed here. The renewed use of tax abatement and enterprise zones has yet to answer what purpose they serve. Even half a decade ago, it was clear that data centers provided few jobs. At the time, it was known that they were a significant draw on power, to the point that single data centers were compared to whole cities’ residential usage.
But multiple administrations at the city and county level have had the opportunity to state the need and failed wildly. The city, the county, and private interests like the North Hillsboro Alliance have had the opportunity to explain why priorities shifted from residential and commercial need—adjacent to residential and commercial land—to data-center industrial.
But Jacob Roloff has voiced what’s become burgeoning sentiment in unincorporated Washington County. If Hillsboro is going to overreach its bounds and go after rural county land, folks out in the county are going to make their voices heard in Hillsboro government and lobby to pry entrenched interests out. It happened in North Plains, and Hillsboro’s scale can’t shield it from the rising costs and visible patronage within its borders. If Hillsboro politicians are more concerned with getting me and my in-the-county neighbors paid for acreage than they are for making conditions within city limits livable for residents, then there’s precedent for what’s about to happen to them.
Festus, Missouri: https://www.politico.com/news/2026/04/13/missouri-city-council-data-center-00867259
Port Washington, Wisconsin: https://www.politico.com/news/2026/04/08/wisconsin-city-passes-nations-first-anti-data-center-referendum-00863432
Box Elder County, Utah: https://utahnewsdispatch.com/2026/05/04/box-elder-commissioners-approve-data-center/
Independence, Missouri: https://www.kcur.org/politics-elections-and-government/2026-04-09/after-these-independence-councilmembers-supported-an-ai-data-center-voters-ousted-them
Thanks Jason for providing these links to some very appropriate and timely stories – it appears that lots of folks are rising up! The question is – will Hillsboro and Washington County voters pay attention and vote to make changes or vote for the same bunch of shenanigans that’s been going on for far too long? It’s time for a change!
And congratulations, Hillsboro: The Mercury pretty much never acknowledges the city’s existence and keeps within its own footprint. But it’s totally call out Hillsboro for holding a “fire sale” for data centers: https://www.portlandmercury.com/good-morning-news/good-morning-news-hillsboro-desperate-for-data-centers-farmer-market-flurries-and-weird-war-leads-to-oil-profits/
Thank you Dirk and Jacob! Almost seems like a case for the Attorney General. Maybe Consumer Protection or Fraud Division. Someone definitely needs to look into the corruption going on here. I mean really this is the kind of coverup that the current Republican administration is known for. I guess it doesn’t really matter anymore. Seems once people get into office if they are mainstream Democrat or Republican they all drink from the same trough. They are all for sale.
What’s incredibly frustrating, in addition to the city’s elected leaders ignoring the will of the overwhelming majority of its citizens, is that no one, on a state or local level, has ever sufficiently explained what the supposed benefits to Oregonians these data centers provide. They don’t create jobs. They don’t provide much revenue because of the tax breaks. They raise energy prices and use up available water. It seems the only benefit is to the campaign coffers of the elected officials (of all kinds, I’m not throwing stones at a particular political party) greenlighting these travesties
The article stated that 3500 signatures were obtained on a petition. How can we source this petition? And what other effective strategies can be employed. This is a huge problem, and we need many more eyes on it.
There are thousands of eyes on it. The fact is that the Governor and Attorney General have been contacted. The City Manager has been put on notice. The Mayor and Council are all now potentially facing a recall- anyoene in power who does not get on top of this will face recall. What was done in my view is illegal and immoral and violated ethical standards. I wrote the letter in today’s article and it covers almost all of the potential points.
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totally agree here; these data centers presence and tax relief incentives are outrageous, to say the least. What is the motivation of the Hillsboro politicians to allow this to happen? What do they believe is beneficial to the citizens of Washington County long term?? Huge puzzle for me. I would greatly like to see complete and permanent halt of any more data centers constructed in Washington Co. We already have too many greatly and constantly leaching water/electric resources now, plus causing great harm economically to citizens of Washington Co. in so many ways.