Salem City Council bans NDAs, gets update on data center moratorium
Salem City Council has prohibited non-disclosure agreements related to data center developments and is considering a temporary moratorium on new data centers, with a public hearing scheduled for September 21. This follows public outcry over a previously signed NDA with Verrus, a company that had filed a land use application for a data center. The city is also updating zoning regulations to protect water, environment, and electricity infrastructure, while Oregon's governor supports a statewide moratorium.
The Salem City Council recently voted to prohibit non-disclosure agreements (NDAs) specifically related to data center developments, mandating that staff notify the council of all NDAs. This decision, passed 8-1, was prompted by public outrage over City Manager Krishna Namburi's signing of an NDA with Verrus, a company that explored building a data center and later filed a land use application for a 600,000-square-foot facility in southeast Salem. Namburi has since changed internal procedures, informing the council about NDA requests and adopting a policy against signing them with data center developers.
In addition to the NDA ban, the Salem City Council is actively pursuing a temporary moratorium on new data centers. A public hearing is scheduled for September 21, where the council will decide on implementing the moratorium, which, if passed, would last until January 19, 2027. The council also unanimously adopted a resolution on August 3 to update zoning code and land-use regulations to safeguard the city's water, environment, and electricity infrastructure from large data centers. City attorney Dan Atchison clarified that while the moratorium would halt future developments, it might not affect applications already submitted, such as Verrus's.
Salem's actions reflect a broader trend in Oregon, as Woodburn City Council recently adopted a 120-day moratorium on data center applications. Oregon Governor Tina Kotek has also voiced support for a three-year statewide moratorium, with a proposal expected in the 2027 legislative session. Salem is conducting a series of town halls and a community survey to gather public input on data center policies.