Wilsonville is moving to restrict standalone data centers from an 847-acre industrial zone that sits directly on Tualatin's southern border, a decision that could shape what kind of employers land next to the region's growing tech corridor.
The Wilsonville City Council discussed new parameters for data center development in the Basalt Creek Planning Area during an Aug. 17 work session, Your Oregon News reported.
Staff will bring a revised draft of the Basalt Creek Master Plan to the planning commission for a public hearing on Sept. 9.
The planning commission's recommendation: allow data centers only as an accessory use on the same lot as another business, not as standalone facilities. Any proposed data center in the area would also require conditional use approval from the Wilsonville Development Review Board, adding a layer of public review beyond a routine staff decision.
Senior planner Chris Meyers told the council the change means data center proposals would no longer be a staff-level decision but would automatically go before the Development Review Board for analysis and oversight.
The approach would not ban data centers outright. Siemens already operates a data center tied to its tech operations in Wilsonville, a model the planning commission said fits the plan's intent. The council also floated prohibiting data centers in most of Basalt Creek except a high-tech subdistrict, though the planning commission was not ready to go that far.
Councilor Sam Scull said he didn't want the city to fall behind as data center technology evolves. "We're thinking about it in today's world, but what is it going to look like in two or three years? It could require more electricity and more cooling, or it may not. So we need to define that happy medium," Scull said.
Why it matters for Tualatin
The Basalt Creek area fills the gap between Tualatin's southern edge and Wilsonville's northern boundary, where the two cities sit less than a mile apart.
Tualatin and Wilsonville jointly adopted a concept plan for the area in August 2018, and Tualatin's own planning documents project the zone will accommodate 1,897 new jobs.
Tualatin Economic Development Manager Sidaro Sin cited the Basalt Creek Development Area as a model for how new industries would set up shop in Tualatin during a July 13 presentation to city councilors.
At that same meeting, Tualatin Mayor Frank Bubenik raised the question of whether the city has enough land and infrastructure for high-tech manufacturers looking to expand.
Lam Research's planned $1.5 billion expansion of its Tualatin campus, announced July 31, underscores the demand. That project alone is expected to add 445 research and engineering jobs by 2041.
Statewide context
Wilsonville's approach comes as Oregon grapples with data center growth statewide. The Legislature paused a popular tax incentive program for data centers in March 2026, Hillsboro imposed a 120-day moratorium on new data center approvals in early August, and four Democratic lawmakers have proposed a three-year statewide moratorium bill for the 2027 session.
Gov. Tina Kotek's data center advisory committee has said it will not recommend a moratorium; its draft report is expected by mid-September.
The planning commission has held 11 work sessions on the Basalt Creek Master Plan over the past two years. The Sept. 9 public hearing is the next opportunity for residents to weigh in on what kind of development takes shape on Tualatin's doorstep.
