Salem Data Center Moratorium Pauses Construction

Salem Data Center Moratorium Pauses Construction

News ClipSalem Business Journal·Salem, Marion County, OR·9/22/2026

The Salem City Council unanimously adopted a 120-day moratorium on data center construction to address concerns about water consumption, electricity demand, and noise. The moratorium, which took effect September 21, 2026, will pause new projects while the city develops comprehensive regulations. The decision does not halt the processing of existing applications, but construction can be prohibited during the moratorium.

moratoriumgovernmentelectricitywaterenvironmental
Gov: Salem City Council, Mayor Julie Hoy, Councilor Linda Nishioka, Councilor Paul Tigan, City Attorney Dan Atchison, Salem’s Data Center Task Force

The Salem City Council unanimously enacted a 120-day moratorium on data center construction and development, effective September 21, 2026, and scheduled to expire January 19, 2027. The pause allows the city to develop regulations addressing potential impacts such as water consumption, electricity demand, and noise. The vote was seven in favor, with Mayor Julie Hoy included, and two councilors absent.

While the moratorium is in effect, the city must continue processing applications submitted prior to the measure, such as Verrus's pending Oakline at Mill Creek application, though construction can be prohibited. The decision follows a statewide study by ECOnorthwest and the University of Virginia, which estimated Oregon data centers consumed 14.05 terawatt-hours of electricity in 2025 and could reach 31% to 32% of the state's total electricity demand by 2030.

City officials cited potential high water consumption risks to Salem’s drinking water supply, along with gaps in existing regulations for low-frequency noise and heat discharge. Councilor Linda Nishioka emphasized the need to evaluate risks, while Councilor Paul Tigan described the moratorium as the first step in a public process to gather information. Salem’s Data Center Task Force is expected to present recommendations by December 7, 2026, with proposed regulatory changes anticipated before the end of the year.