Housing September 1, 2026

Portland City Council Housing & Permitting Committee 09/01/26

Council committee voted unanimously to tell the city administrator: don't sign secret NDAs with data center companies, and yes, they're eyeing a moratorium on hyperscale ones next. One councilor (Pirtle-Guiney) flagged her wife works at Microsoft. Full council vote comes next, Sept 15.

Summary

A resolution urging Portland's city administrator to refrain from signing non-disclosure agreements related to data centers cleared the Housing & Permitting Committee unanimously and now heads to full council. Sponsored by Councilors Koyama Lane and Green, the resolution asks the city to notify council of data center inquiries and to keep decisions about siting, permitting, utility rates, and public resources transparent. An amendment adopted during the meeting added language stating council's intent to pursue a moratorium or zoning restrictions on hyperscale data centers as soon as possible. Councilor Pirtle-Guiney declared a potential conflict of interest, noting her wife works for Microsoft, which develops data centers.

Staff from the Bureau of Planning and Sustainability explained that data centers are currently treated as "industrial office" uses under Portland's zoning code, allowing them in commercial, mixed-use, and employment zones, plus industrial zones within the Central City. They noted Portland's small lot sizes make it less suited to large hyperscale facilities. Invited speakers and roughly a dozen public testifiers raised concerns about data centers' water and energy use, noise and heat, effects on the electrical grid and utility rates, and the secrecy of backroom deals. Many urged the city to go further with a full moratorium or ban, and several asked that the word "urge" be changed to "require" or "prohibit" — though Councilor Green explained the city charter limits council to signaling intent rather than directing the mayor's contract authority through a resolution.

Chair Avalos also gave an update on the Unified Housing Strategy, reporting that three stakeholder sessions on preservation, production, and funding had been held, with additional virtual sessions and district-level public conversations planned for the coming weeks. The resolution now goes to full council, and the committee's next meeting is set for September 15.

Key Points

  • Resolution urging the city administrator to refrain from signing data center non-disclosure agreements was advanced to full council, with an amendment stating council's intent to pursue a moratorium or zoning restrictions on hyperscale data centers
  • Update on Unified Housing Strategy community engagement, including three stakeholder sessions held and district-level public conversations planned for October
  • Staff presentation on how data centers are currently classified as industrial office use in Portland's zoning code and where they are allowed

Votes (2)

Passed

Amendment Koyama Lane-Green One to Resolution 2026-299

Adds a clause stating City Council intends to pursue a moratorium or zoning restrictions on all hyperscale data centers at the earliest time and consider additional approaches for large load data centers

Yes: 3 No: 0
Passed

Resolution 2026-299 (as amended)

Urges the city administrator to refrain from signing data center non-disclosure agreements, notify City Council of inquiries for data center deals, and engage in transparent public processes related to data centers

Yes: 4 No: 0

Action Items

  • Refer Resolution 2026-299 as amended to full City Council for a vote
  • Housing Bureau to re-contact council offices about district-level engagement sessions with specific questions
  • Staff to research what a 20-megawatt data center translates to in terms of building and lot size before the resolution reaches full council
  • Councilors to help coordinate district-based Unified Housing Strategy engagement sessions
  • Next Housing & Permitting Committee meeting scheduled for September 15

Issues Discussed (13)