About the Data Center Proposed Development in La Pine

Dated: May 12 2026

Views: 584

La Pine Community  ·  Local Development  ·  What You Should Know

The Proposed Newberry Business Park Data Center: A Community Explainer

Research & Analysis by Jordan Marx  |  May 2026
95"
Avg Annual Snow
33%
Below State Elec. Rate
3–15 yr
Enterprise Zone Tax Break
3,889
Darlene 3 Fire Acres

My name is Jordan, and I'm a local real estate broker with eXp Realty operating here in Central Oregon. Before getting into sales, I spent six years as a county appraiser and have been involved in real estate in one form or another since 2018. I also help private Oregonians navigate the property tax appeals process. Research is genuinely what I do — and when I heard about the proposed development at Newberry Business Park, I decided to dig in. Here's what I found.

Who Is Actually Proposing This Development?

The company is Boxminer.io, which operates as a legal entity called Hidden Pines LLC — based out of San Diego County, California. One critical clarification: there is a completely unrelated local business also called Hidden Pines LLC right here in La Pine (an RV park). They are not connected in any way to this proposal.

There is no business currently registered in Oregon under the name Boxminer.io, and no property in Deschutes County is recorded under that name at this time. No formal application has been filed with the City of La Pine as of this writing. Based on available evidence — including Boxminer's own listing of Oregon as an active development state and the park's explicit marketing toward data center operations — the most likely target is somewhere within the Newberry Business Park / Finley Butte Industrial Park corridor, though that specific location has not been confirmed through any public record.

What Does Boxminer Actually Do?

Boxminer builds data centers that mine Bitcoin — but mining is not their end game. It's their bridge strategy. They develop a site, use bitcoin mining to generate revenue and prove the infrastructure, then shop the site to a larger AI or high-performance computing company as a permanent buyer or tenant. The mining funds the build while they pursue the eventual sale.

“Miners have the power, AI needs the power — we make the connection.”
— Boxminer.io / Powered Land Development, company website

Their website now describes the company as “Powered Land Development.” What La Pine may actually be looking at is not a permanent bitcoin mining campus — it's a proof-of-concept development intended to attract an AI-related buyer or tenant down the road. Boxminer is the developer and interim operator, not necessarily the long-term occupant.

Why La Pine Makes Sense for This Kind of Development

It's worth being honest about why our community is an attractive target — because the reasons are genuinely good ones for La Pine. Data centers are among the most energy-intensive industrial operations in existence, and cooling is one of their largest operating expenses.

Avg Annual Snowfall
95 inches
vs. 28" US average — ~5 months of free natural cooling
Annual Precipitation
23 inches
vs. 38" US average — dry air is ideal for cooling systems
Midstate Electric Rate
~33% below
Oregon state average — critical for 24/7 operations
Elevation
4,236 ft
High desert climate — cooler year-round ambient temperatures

Add affordable industrial land — among the lowest per-acre costs in Deschutes County — plus existing water, sewer, and power infrastructure already in place at Newberry Business Park, and La Pine checks essentially every box a data center developer looks for. This interest is not random. The park has been actively marketed for data center operations, and La Pine is genuinely well-positioned for this type of development.

What a 20MW Facility Would Actually Look Like

The industry standard is roughly 3 to 4 megawatts of power capacity per acre of land. A 20MW facility would occupy approximately 5 to 7 acres of active footprint — closer to 10 to 15 acres when you add electrical substation infrastructure, perimeter security fencing, access roads, and buffer zones.

What That Looks Like on the Ground
Boxminer uses a container-based model. At 20MW, that's roughly 30 to 40 shipping containers — each the size of a semi-trailer — arranged in rows, connected by overhead power lines and cooling systems, enclosed inside a security fence with an on-site substation. Picture 4 to 5 football fields of industrial infrastructure running 24 hours a day, 365 days a year. The noise from cooling fans, perimeter lighting, and visual presence of industrial containers would be noticeable from surrounding properties.
What About Taxes — Who Benefits, and Who Doesn't?

Normally, when a new development comes into Deschutes County, Oregon's Measure 50 property tax system triggers what's called an exception. That exception revalues the land and new improvements, establishes a new maximum assessed value, and the development begins generating property tax revenue — flowing to local government, schools, and public services. That's the standard community return on hosting a new commercial development.

However, Newberry Business Park sits inside the Deschutes County Rural Enterprise Zone — a state-authorized program that provides qualifying businesses with a significant exemption from most, if not all, property taxes normally owed on new development. The exemption can last 3 to 15 years. Oregon also has no state sales tax, and the state's corporate tax structure offers additional relief to data center operators.

State research has shown that long-term rural enterprise zone deals used for data centers in small communities give away approximately $54,500 in tax breaks for each job created — a return that warrants careful scrutiny in any community negotiation.

For an extended period, this development may contribute very little in property tax revenue to La Pine's schools and local services — regardless of the size or value of the infrastructure built. That's by design. But the community deserves to understand what's being exchanged.

A Risk the Community Should Be Talking About: Wildfire
⚠️  The Darlene 3 Fire — June 2024

The Darlene 3 Fire broke out one mile southeast of La Pine, rapidly grew to nearly 3,900 acres, and triggered Level 3 “Go Now” evacuation orders for areas east of Highway 97 — the same corridor where the industrial park sits. More than 1,100 homes were placed under Level 2 or higher evacuation alerts. Governor Kotek invoked Oregon's Emergency Conflagration Act, bringing in firefighting resources from across the state. It was the third significant fire event in the immediate area in recent years, following the original Darlene Fire in 2021.

This was not a distant or hypothetical threat. It happened in the neighborhood.

Data centers require uninterrupted 24/7 operation. They cannot be evacuated. They depend on continuous power, cooling water, and stable air quality — all three of which were directly compromised during the Darlene 3 event, when thousands of residents lost power and smoke blanketed the region. A large-scale industrial computing facility in a high wildfire-risk corridor introduces compounding risks:

Increased demands on local water supply during firefighting operations
Potential grid strain during emergency response when the community needs power most
A facility that cannot safely operate during the kind of fire events La Pine residents now consider a regular part of summer life
Smoke and particulate damage to sensitive computing equipment housed in ventilated containers
What Should the Community Be Asking?

I'm not here to tell anyone how to feel about this proposal. What I do think is that the conversation deserves accurate information. A few questions worth raising with local officials:

What are the specific terms of any enterprise zone agreement being negotiated, and how long does the tax exemption last?
What job creation commitments, if any, are attached to the incentives?
If Boxminer successfully finds an AI buyer and transfers the site, does the new owner inherit the same tax treatment?
What happens to the site if the develop-and-flip strategy doesn't succeed?
What is the facility's emergency plan in the event of wildfire evacuation — and how does its water and power demand interact with emergency response capacity?
The Bottom Line
This is your community and your tax base. La Pine has genuine, long-term value as a data center destination — that's real and worth understanding. But the community deserves to know who is proposing this, what their actual business model is, what the tax implications are, and what the risks look like before any agreement is signed.
Jordan Marx
Licensed Real Estate Broker  |  eXp Realty  |  Central Oregon  |  541-841-9727
Sources: Boxminer.io / Powered Land Development  ·  Oregon State Fire Marshal  ·  OPB / Central Oregon Fire Info  ·  City of La Pine  ·  Deschutes County  ·  Business Oregon Enterprise Zones  ·  EDCO  ·  Hines Research / Data Center Land Study  ·  BestPlaces.net Climate Data  ·  FindEnergy / Midstate Electric  ·  RocketReach / Hidden Pines dba Boxminer.io
Blog author image

Jordan Marx

As a licensed real estate broker with eXp Realty, I help buyers and sellers across Central Oregon—including Bend, Redmond, La Pine, and Madras—navigate every stage of the real estate proce....

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