Data Center’s Property Tax Break Denial Affirmed by Oregon Judge

A Digital Realty Trust Inc. unit must pay a $3.42 million property tax bill after the Oregon Tax Court ruled that it didn’t correctly file exemption paperwork for its two data centers outside Portland.

The case highlights how states are starting to push back on tax breaks for data centers as demand increases to fuel the artificial intelligence boom.

Beaver Ventures LLC sought an enterprise zone exemption for its properties in Hillsboro, Ore., for the 2024-2025 tax year. It included claims for tax breaks under its 2017 and 2023 EZ authorization applications on the same form.

The Washington County Assessor ...