Gov. Tina Kotek orders state to kill land sale for Salem data center
Oregon Governor Tina Kotek has ordered the state to terminate a land sale contract for a proposed 32-acre data center project in Salem by Verrus, citing concerns about community impacts, infrastructure, and natural resources. This decision follows significant public opposition and comes as the Salem City Council plans to consider a moratorium and zoning amendments for AI data centers. Verrus leadership expressed disappointment but stated their intention to still pursue the project in Salem.
Oregon Governor Tina Kotek has directed the Department of Administrative Services to terminate a contract for the sale of approximately 32 acres at the Mill Creek Corporate Center in southeast Salem, effectively halting a land deal crucial for Verrus's proposed $5.1 billion Oakline at Mill Creek data center project. The Governor's order, issued on July 30, puts the controversial project's future in jeopardy, with her office stating the decision reflects a commitment to managing state assets in line with Oregon's long-term interests, community support, and priorities for affordability, responsible economic development, and resource stewardship.
Verrus company officials expressed strong disagreement with Kotek's unilateral decision, emphasizing that it was made without consultation and before they could present their design, infrastructure plan, and community benefit proposals. Despite the setback, Verrus leadership affirmed their intention to continue pursuing the data center project in Salem, stating they believe in building data centers responsibly while addressing community concerns. The Governor's intervention came shortly after hundreds of residents rallied against the proposed data center on July 27.
In response to growing concerns, the Salem City Council is scheduled to hold a special meeting on August 3 to consider initiating a moratorium on AI data centers and amending existing zoning codes to regulate such facilities. Additionally, Governor Kotek, in January, established a Statewide Data Center Advisory Committee, which is currently developing policy recommendations for data centers and is slated to discuss a draft report on August 4. Verrus has been a participant in this advisory committee, presenting its model for responsible data center development focused on reducing water use, supporting the electric grid, and delivering community benefits.