Gov. Tina Kotek orders Oregon to withdraw land sale for Salem-area data center
Oregon Governor Tina Kotek has ordered the state to withdraw its land sale contract with California-based Verrus for a proposed $5.1 billion data center near Salem. The Governor cited the need for state actions to reflect Oregon's values, including responsible economic development and protecting natural resources, following resident concerns over infrastructure, water, and energy impacts.
Governor Tina Kotek of Oregon has directed the state to cancel a land sale agreement with Verrus, a California-based technology company, for a proposed $5.1 billion data center project located at the Mill Creek Corporate Center in southeast Salem. The project, known as Oakline at Mill Creek, had garnered support from local construction unions but also faced significant pushback from residents due to concerns about its impacts on infrastructure, water, and energy resources.
Kotek's decision, announced on Thursday, underscores her commitment to ensuring state actions align with Oregon's values, particularly regarding affordability, responsible economic development, and the protection of natural resources. She emphasized that while she supports economic growth and new investments, projects of this magnitude must be carefully evaluated for their community impacts.
The data center proposal, which would have represented one of Salem's largest private investments, remains under city review despite the withdrawal of the state land sale. The Governor's order highlights the growing scrutiny large-scale data center developments are facing over their environmental and resource demands.