Salem City Council votes in favor on moratorium on AI data centers
The Salem City Council unanimously voted to enact a temporary moratorium on AI data centers and begin updating zoning regulations, following significant public opposition to the proposed Verrus 'Oakline at Mill Creek' project. Residents expressed concerns about the impact on the city's water supply, environment, and electricity infrastructure. Despite the moratorium, Verrus plans to proceed with a data center on privately owned land.
The Salem City Council has unanimously voted to implement a temporary moratorium on AI data centers and initiated a process to update the city's zoning code and land-use regulations. This decision on August 3 followed intense public opposition, including a standing-room-only meeting on July 27 and extensive written testimony, primarily focused on the environmental, water, and electricity infrastructure impacts of large data centers.
Local residents and activists voiced strong objections to Verrus's proposed "Oakline at Mill Creek" data center, a 600,000-square-foot facility planned for southeast Salem. Opponents, including Robert Magnuson and Charlie Davis, urged the council to prevent the project, while construction and electrical unions, represented by IBEW 280 business manager Lynn McDonald, spoke in support, citing job creation and investment.
Despite the council's action, city staff noted that land use applications submitted before new moratoriums or zoning changes typically proceed under existing rules. Verrus CEO Nelson Abramson confirmed the company's intent to move forward with the project on 100 acres of privately owned land, detailing a $394 million development, after Governor Tina Kotek's office terminated a state contract for the sale of 32 acres at the Mill Creek Corporate Center to the company. City Manager Krishna Namburi called the special meeting to address community concerns, acknowledging that current zoning, established in 2005 and updated in 2014, did not account for the scale of modern hyperscale AI data centers and their demands on resources, particularly in light of Salem's ongoing drinking water supply issues.
Councilor Vanessa Nordyke emphasized that the vote was the first step, indicating further state-level work to address barriers. The moratorium allows the city time to study impacts and develop new regulations, which could include restricting data center locations, requiring conditional use permits, and imposing infrastructure requirements. The city is also engaged in a separate lawsuit against the federal government regarding water supply issues from the Detroit Reservoir.