Eugene Rejected Proposed West Side Data Center
The city denied a data center proposal on September 8 due to zoning restrictions at a former industrial site.
Updated on Sept. 29, 2026 in Data Centers
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On September 8, the City of Eugene rejected a proposal for a data center at the former Hyundai-Hynix site in west Eugene. Officials determined the project was non-compliant with the existing E-1 Campus Employment zoning ordinance.
Why it matters
The rejection highlights tension between industrial development and land use codes, as residents raised concerns about safety, community resource usage, and environmental impacts. The decision also led to new internal policies regarding transparency for future proposals.
The proposal targeted the former Hyundai-Hynix site, which is currently zoned as E-1 Campus Employment. Data centers are not defined as a permitted use under this specific land use code, leading to the city's formal rejection.
The players
Jenny Haruyama
She serves as the City Manager of Eugene and issued the directive prohibiting staff from signing non-disclosure agreements for data center projects.
Eugene City Council
This local governing body is responsible for municipal oversight and held a public meeting to discuss the implications of the proposed development.
The details
After receiving a zone verification request on July 16, the city issued a letter confirming the project violated local land use codes. City Manager Jenny Haruyama subsequently issued an administrative order on September 16, which forbids city staff from signing non-disclosure agreements regarding future data center projects.
Timeline
July 16: The city received the initial zone verification request.
September 8: The city formally rejected the data center proposal.
September 14: The Eugene City Council convened for a public meeting.
September 16: The city manager prohibited staff from entering into NDAs for data projects.
December 14: The city will hold a public works session to discuss potential new regulations.
The Tech Race
The rejection of this project highlights the evolving regulatory hurdles facing the infrastructure expansion of modern digital networks. By strictly enforcing land use codes, the city is positioning itself against the rapid proliferation of high-resource data centers seen elsewhere in Oregon.
Residents benefit from the city's commitment to zoning transparency, ensuring that industrial development aligns with established community safety and resource standards. The new policy against staff-signed NDAs increases the level of public oversight for future projects that could impact local infrastructure.
The takeaway
The city's decision emphasizes the importance of aligning large-scale industrial projects with existing municipal zoning ordinances. Local officials are prioritizing community transparency by restricting the use of non-disclosure agreements during the development review process.
What happens next
The City of Eugene has scheduled a public works session for December 14 to discuss potential updates to regulations regarding data center developments.
Further reading
Learn more about local infrastructure trends in the Data Centers section of our site.
Source note: This article includes information reported by Daily Emerald.
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