Massive $5.1B data center proposed for Salem draws praise and pushback
A California-based technology company, Verrus, has proposed a $5.1 billion data center project, Oakline at Mill Creek, in Salem, Oregon. The proposal, still under city review, has garnered support from construction unions for economic benefits but faces pushback from residents concerned about water, electricity, noise, and the public process. The site is already zoned for data centers, meaning no rezoning is required, and the city is evaluating the project's potential impacts and benefits.
Verrus, a California-based technology company, has proposed Oakline at Mill Creek, a $5.1 billion data center campus and utility substation, for the Mill Creek Corporate Center in southeast Salem, Oregon. Salem City Manager Krishna Namburi confirmed that the project, one of the largest private investments in the city's history, is currently in the early stages of city review and has not yet been approved. If approved, Verrus projects the facility, designed to support cloud computing and AI, would create years of construction work, 75 permanent jobs, and generate millions in annual tax revenue for Salem.
The 75-acre campus would feature three data center buildings and a utility substation. Verrus emphasized its design incorporates battery energy storage, a closed-loop cooling system to reduce water use, and technology to decrease electricity demand during peak grid stress, aiming to be a resource rather than a strain on the regional electric grid. The company also stated it would cover necessary infrastructure upgrades. However, specific estimates for water and electricity use are still pending.
The proposal, initially brought to the city through the Strategic Economic Development Corporation (SEDCOR) in March 2025, has undergone several technical meetings. The site is already zoned Employment Center, allowing data centers as an outright permitted use, thus bypassing the need for rezoning. During a recent City Council meeting, the project received support from local construction unions, including the North Coast States Carpenters Union and IBEW Local 280, who highlighted the potential for stable jobs and economic growth.
Conversely, numerous residents voiced strong opposition, urging the city to slow down the process and expressing concerns about water usage, electricity demand, noise, and broader environmental impacts. Residents like Debbie Robley questioned the necessity of more data centers in Oregon given existing facilities and their environmental footprint. Criticism also arose regarding the project's introduction, with residents requesting proper public notice for future discussions.