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Oregon City Council Rejects Ordinance, Jeopardizing Capacity LLC Data Center Project

DATA AND AI INFRASTRUCTURE

The Oregon City Council rejected an emergency ordinance that would have amended the development agreement with Capacity LLC, jeopardizing a proposed data center. The ordinance aimed to extend key contingencies related to pipeline access and emissions approvals, but failed on a split vote.

City officials noted that the current deadline of March 31 likely will not provide enough time for developers to meet necessary permitting and infrastructure requirements. The project is reportedly six months behind schedule, and negotiations for a sales agreement remain unresolved. Without the amendment, the project may be at risk of cancellation.

Oregon City Council Rejects Ordinance, Jeopardizing Capacity LLC Data Center Project
Feb 11, 2026, 6:07 AM

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