HILLSBORO, Ore. — A proposed 100% increase in utility rates has sparked outrage in this Portland suburb, with critics alleging the hike is designed to subsidize power demands from data centers benefiting from local tax breaks. The Hillsboro City Council will vote Tuesday on the measure, which would double electricity costs for residential customers over three years while maintaining discounted industrial rates.
The controversy centers on Clean Water Services (CWS), the regional utility provider that secured $2.1 billion in tax incentives since 2018 to attract data centers from Amazon Web Services, Facebook, and Google. Internal documents obtained by The Oregonian show CWS warned commissioners last month that infrastructure upgrades for these facilities require ‘rate restructuring to ensure long-term viability.’
‘This is corporate welfare disguised as public policy,’ said Hillsboro School Board member Alicia Zhou, whose coalition has collected 4,200 signatures against the proposal. ‘Families earning median incomes will see their utility bills exceed mortgage payments.’
However, economic development officials argue the data centers have generated 1,900 jobs and $380 million in annual tax revenue. ‘Without these partnerships, we’d be facing even steeper rate increases to maintain our aging grid,’ said CWS spokesperson Mark Reynolds, noting residential rates haven’t increased since 2016.
Analysts warn the conflict reflects a national pattern. A 2025 Brookings Institution study found data centers receive $32 billion annually in local subsidies nationwide while consuming 2.5% of U.S. electricity — a figure projected to triple by 2030. The outcome of Tuesday’s vote could influence similar debates in Phoenix, Northern Virginia, and other tech hub regions.