Best Data Center & Digital Infrastructure Lawyers in Oregon

About Data Center & Digital Infrastructure Law in Oregon, United States

Data center and digital infrastructure law in Oregon covers the legal rules and regulations that govern the planning, building, operation, security, and management of data centers and related facilities. Oregon has emerged as a hub for data centers due to its relatively low energy costs, favorable climate, tax incentives, and robust infrastructure. Digital infrastructure refers to the hardware and software systems that support data storage, transmission, and processing, including fiber optic cables, cloud services, servers, and more. Legal considerations in this field touch other areas such as land use, environmental law, utility regulation, tax law, data privacy, and cybersecurity.

Why You May Need a Lawyer

There are several situations where individuals, businesses, or investors in Oregon may need the advice or services of a lawyer experienced in data center and digital infrastructure:

• Negotiating or reviewing complex real estate leases or purchase agreements for data center sites
• Navigating local, state, and federal zoning or land use regulations
• Applying for or managing tax incentives and understanding eligibility
• Drafting and enforcing service level agreements (SLAs) and contracts with vendors and clients
• Addressing environmental compliance related to energy use, water rights, or emissions
• Managing intellectual property and data privacy concerns
• Resolving disputes regarding construction, operations, or service delivery
• Handling cybersecurity incidents and understanding reporting obligations

Local Laws Overview

Oregon’s legal framework for data centers and digital infrastructure is influenced by state codes, county and city ordinances, and federal law. Key points include:

• Land Use and Zoning: Data centers are often classified as industrial or utility uses and must comply with local zoning regulations. Certain locations in Oregon, such as Hillsboro and The Dalles, have pre-zoned business parks attractive to data center development.
• Tax Incentives: Oregon offers enterprise zone and strategic investment program (SIP) property tax incentives for qualifying data centers. These incentives may exempt certain improvements or equipment from local property taxes for a period of time.
• Energy and Environmental Compliance: Data centers are significant energy users. Oregon’s Department of Environmental Quality (DEQ) and local utility commissions oversee emissions, energy efficiency, and resource use. Some cities have renewable energy goals or reporting requirements.
• Privacy and Data Security: While Oregon follows federal data protection laws, it also has its own data breach notification laws and consumer privacy protections.
• Building Codes and Permitting: All new constructions or significant renovations must comply with local building codes, fire safety requirements, and electrical system standards.

Frequently Asked Questions

What is a data center and why are so many being built in Oregon?

A data center is a dedicated facility that houses computer systems and associated components such as servers, storage, and networking equipment. Oregon's supply of affordable power, business-friendly incentives, and climate make it a popular location for data centers.

What incentives are available for data centers in Oregon?

Oregon offers property tax abatements through the Strategic Investment Program (SIP) and enterprise zones for qualifying investments. Some local jurisdictions may offer additional incentives.

Do data centers in Oregon have to use renewable energy?

There is no statewide mandate specifically for data centers, but many choose to use renewable energy due to utility programs, local sustainability goals, or as a condition of incentives.

What local agencies regulate data center projects?

Local planning and zoning departments, county building departments, the Oregon Department of Environmental Quality, and in some cases the Oregon Public Utility Commission are key agencies.

Are there special laws about the privacy of data stored in Oregon?

Oregon has state-specific data breach notification laws and consumer data protections that apply to businesses, including data centers. Federal laws may also apply depending on the type of data stored.

What environmental regulations must a data center operator follow?

Operators must comply with environmental rules regarding air emissions, water use, waste disposal, and possibly noise abatement. Large power users may have additional reporting or compliance obligations.

What kind of contracts are typically involved in a data center project?

Common contracts include property leases or sale agreements, construction contracts, utility service agreements, equipment purchases, colocation agreements, and SLAs with customers.

Who owns the data stored in an Oregon data center?

Data ownership is generally determined by the agreements between the service provider and its customers. It is important to clarify data ownership, access, and security obligations in contracts.

How do I resolve disputes with a data center developer or operator?

Disputes can often be resolved through mediation or arbitration. If informal resolution fails, legal action may be necessary. An attorney can advise on contract enforcement or negotiation strategies.

What are the main risks associated with operating or investing in a data center in Oregon?

Key risks include project delays, regulatory compliance costs, utility disruptions, security breaches, changes in tax policy, and evolving technology standards.

Additional Resources

If you need more information or guidance, these resources can be helpful:

• Oregon Department of Environmental Quality (DEQ) for environmental compliance and permits
• Oregon Economic Development Association for incentives and business assistance
• Oregon Department of Revenue for details on property tax laws and incentives
• Local city and county planning or building departments for zoning and permitting
• Oregon Public Utility Commission for energy and utility regulations
• Tech industry groups such as the Technology Association of Oregon
• Oregon Secretary of State for business registration and compliance

Next Steps

If you are considering a project, investment, or partnership related to data centers or digital infrastructure in Oregon, the first step is to consult with a lawyer who specializes in this area. They can help you:

• Evaluate the legal and regulatory requirements for your specific situation
• Assess your eligibility for state and local incentives
• Draft, review, and negotiate contracts or agreements
• Navigate local permitting and compliance processes
• Understand your obligations under data privacy and cybersecurity laws

Before meeting with a lawyer, organize any documents related to your project, such as business plans, site options, contracts, and communications with government agencies. Prepare a list of your questions and business objectives to make the initial consultation as productive as possible.

Selecting the right legal advisor is crucial. Look for attorneys or law firms with proven experience in Oregon data center and digital infrastructure projects. Consider seeking referrals from business associations or professional networks. Acting early and getting informed legal guidance can help you avoid costly mistakes and set up your project for success.