Data Center in Molalla

Update: City Staff has researched the Data Center developer inquiry and provided a fact sheet and timeline in the Documents Section of this project page. You may view it there or use the link provided below.

https://current.cityofmolalla.com/12642/widgets/43393/documents/85034

Recently individuals opposed to Molalla’s state mandated Urban Growth Boundary (UGB) process have exploited the popular outrage of the day to spread false information and rumors regarding “the City of Molalla brining in a data center.” Regardless of the fact that this is just not true, social media has perpetuated this false information to the point where it has become necessary to address.

Is the city attempting to bring in a data center?

No, cities generally do not develop land. Development of any sort is between property owners and developers, the city is merely the regulatory body that ensures development meets with city, state, and federal standards. The city does not own land except current and future parkland, public buildings, and streets.

At this time there is no property owner or data center developer engaged with the City of Molalla to obtain land or otherwise develop a data center. This includes current and future city limits.

Has the city ever attempted to bring in a data center?

Put simply, no. However, cities receive many inquiries from prospecting developers. After a public records search it appears the city did receive one prospecting inquiry approximately 18-months ago regarding utility capacity and available land for a data center. The City did not have adequate capacity in water, sewer, power, or land to sustain such a development and the inquiry ended without further action.

The City also received several inquiries about large format industrial lots for mass timber, and other manufacturing uses. The analyses performed during all of these inquiries highlighted the lack of large format industrial lots for any industry that would provide significant living wage employment for the Molalla community. Given the lack of major industry providing such employment in Molalla the City sought to add at least one large format industrial lot during the UGB process.

Can a data center ever come into the City of Molalla?

Yes, it would take a willing seller of an industrial zone lot and enough water, sewer, and power capacity to serve the development. There have been no such inquiries from landowners or developers beyond that mentioned above.

If you wish to follow along with the UGB process or ask questions about it, please visit the UGB process page at: current.cityofmolalla.com.