Hillsboro Economic Development Corporation (EDC) works with a group of private landowners, collectively known as Y-35, to market the EDC and private land for industrial development.  The expected use is distribution/logistics.  The group works with one prospect for approximately a year, but the deal collapses.  Group spokesperson Gwynn Orr researches other possible prospects.

Real estate developer Brian Glaser reaches out to City Manager Megan Henderson (4/18 text) to inquire about 1000 acres for residential development.  Henderson responds that there’s likely not enough water for a residential development of that size outside the city limits due to water being a constraint.  They discuss by phone and Glaser mentions a development partner may be interested in a mixed-use development including possible data center, industrial and residential elements.  Henderson reiterates that water is a limiting factor for Hillsboro.

EDC enters contract to sell their approximately 300 acres to Provident.  Long contract term allows Provident time to conduct due diligence on the land and explore availability of utilities, including water and power.  Contract includes a provision that it can be extended, but Provident has to pay EDC for every month the contract is extended.

Henderson and Hillsboro EDC Executive Director Jessica Trew meet Glaser, Hawes, additional Provident team, attorneys and engineers in Provident’s offices.  Provident outlines the following next steps: 

1. Begin process of creating a Municipal Management District to fund infrastructure needed for a data center campus (this is an 18-month process and can be underway without a commitment from Provident or the City. In the end no agreement is reached, the MMD application is withdrawn).
2. Begin discussions between City’s engineers and Provident’s engineers to understand water capacity, possible additional/supplemental water sources, and necessary improvements to City infrastructure to serve the development. Necessary improvements to be funded by MMD.
3. Provident to explore electrical service options.

Glaser, Hawes and Provident attorney attend open session of Hillsboro City Council meeting.  Henderson explains that the Municipal Management District application is needed so that, if the project goes forward, the MMD can be used for infrastructure funding.  She explains that approving the MMD application does not approve the project:  rather, it creates tools that can be used in the future if negotiations between the company and the city are successful and a deal is approved.  Hawes presents an overview of Provident and the proposed data center development and shows a concept rendering of what one of the data center buildings might look like .  Council unanimously approves a resolution granting conditional consent to the creation of the Municipal Management District, subject to the conditions outlined in the resolution (minutes, slides, resolution).

Summer 2025

1. Provident seeks EDC approval to create Municipal Management District, as they as the landowner must be the party making application. Ultimately application is filed.
2. Henderson exchanges emails with Provident engineers and Hillsboro engineers to discuss water needs.
   1. Provident engineers provide high-level estimate of possible water use tiers for water-cooled versus air-cooled data centers for up to 12 buildings. Estimate is 350 M gallons per year for water cooled, 150M gallons per year for air cooled. 
   2. Provident engineers say they are looking at a possible 12-building campus and eventual average daily water need (at full build-out) of 960,000 gallons per day, or 350 million gallons per year. 
   3. Henderson confers with city engineers but eventually responds that this is an impossible amount of water for the city. 
   4. Provident engineers reply that there is an extreme variation among data center designs, with some using lots of water and some using very little. Everything at this stage is an estimate and actual numbers would be selected based on what the city can provide. (May-July emails)
   5. Conference call with Provident engineers 7/14/25; they summarize discussion to that “middle tier” water use may be feasible with usage up to 175M gallons per year. 
   6. August 27, 2025: conference call with Provident engineers and City engineers (Walker Partners.)  Meeting goals include possibility of “middle tier” water use, city system capacity for water delivery and fire flow, possible additional water sources, water storage and phasing options for the overall development (buildings to be added 1 or 2 at a time. (meeting results email 8/27/26) (email attachment) Clarifies that water-cooled is off the table, updates air-cooled high-end number to 175M gallons per year, and that if air cooled none of the cooling water goes into the sewer system.  Requests technical memo from Walker Partners regarding water options.
   7. October 21, 2025: Henderson requests Walker Partners proposal for this memo.
   8. November 11, 2025: Henderson forwards Walker Partners proposal to Provident engineers.
   9. June 10, 2026: Provident engineers approve proposal and ask City to move forward with water memo
   10. June 17, 2026: City approves proposal and asks Walker Partners to move forward with water memo.