Salem City Council votes to place moratorium on data centers

The Salem City Council unanimously approved an immediate moratorium on data center development, effective until January 19, 2027. The council's decision, which took place on September 21, aims to protect the city's water, environmental, and electricity infrastructure from potential strains posed by large data centers. This action follows a previous vote on August 3 to advance a temporary moratorium specifically on AI data centers and to begin updating relevant zoning and land-use regulations.

The moratorium applies to all data centers as a primary use and accessory data centers exceeding two megawatts of capacity. The vote was preceded by significant public comment, with the majority of written and oral testimony expressing support for the measure. City attorney Dan Atchison clarified that while existing applications are generally reviewed under rules in place at the time of filing, construction can be prohibited during the moratorium.

One specific project affected is a 600,000-square-foot data center proposed by Verrus CEO Nelson Abramson, whose land use application was filed in late July before the council's moratorium vote. Atchison highlighted concerns about high-volume water demand, particularly with the impending deep drawdown of the Detroit Reservoir, which threatens the city's drinking water supply for its 220,000 users.

Salem is not alone in Oregon; Woodburn City Council also adopted a 120-day moratorium on data center applications on September 14. Governor Tina Kotek has also voiced support for a potential three-year statewide moratorium, with a proposal expected in the 2027 legislative session.