Salem, Oregon, enacts data center moratorium following NDA dispute
Residents in Salem, Oregon, expressed strong opposition to a proposed data center by Verrus, particularly concerning a nondisclosure agreement, potential noise, and energy costs. The city subsequently approved a four-month moratorium on data center development and banned NDAs, following a similar executive order by Pennsylvania Governor Josh Shapiro. The article also highlights the contentious use of NDAs and the growing trend of moratoriums in other states to assess data center impacts.
Residents in Salem, Oregon, voiced significant grievances following the revelation of a proposed data center project by California-based tech company Verrus, after city officials had met privately with the company for over a year. Concerns primarily revolved around a nondisclosure agreement (NDA) signed by the city manager, which even a council member, Vanessa Nordyke, was unaware of until recently. Citizens worried about potential noise, health impacts, and spikes in energy prices, with Verrus having submitted a land use application in late July.
The article explains that local governments often use broad NDAs to conceal preliminary project information, including tax breaks, zoning, and utility use, a practice criticized by experts like Eric Bonds of the University of Mary Washington and David Cuillier of the University of Florida's Freedom of Information Project for hindering public records requests and muzzling officials. Companies like Meta, Amazon, Google, and xAI have reportedly used similar NDAs in other states like Louisiana, Virginia, Arizona, and Tennessee to expedite approvals and avoid opposition.
In response to mounting public and expert criticism, both state and local governments are taking action. On August 18, Pennsylvania Governor Josh Shapiro signed an executive order banning the use of NDAs for data center development. Following suit, the Salem City Council on September 14 prohibited NDAs and approved a four-month moratorium on data center construction and development city-wide, effectively pausing Verrus's project. This allows Salem and other communities, including those in Texas, New York, and Florida, to evaluate the environmental, energy, and quality-of-life impacts of these facilities.