Salem council gets informational briefing on proposed Mill Creek data center
Salem has disclosed a proposed data center campus in the Mill Creek Corporate Center, but the project remains a development concept rather than an approved construction project.
The proposal, called Oakline at Mill Creek, is being explored by Verrus. The city says the proposal remains in its early stages and that no formal development application has been submitted. That means Salem has not approved the project, and the city has not yet reached a final land-use, building, or construction decision.
What is proposed
Local reporting has described a proposal covering approximately 75 acres with three proposed buildings. The developer’s website identifies the proposed site near Turner Road SE and Deer Park Drive SE and describes additional features, including a utility substation and other design elements. Those are developer-provided descriptions of a proposed project, not independent verification that the campus will be built.
The city says the property is understood to be owned by the State of Oregon. The site is in the Mill Creek Corporate Center and is zoned for Employment Center uses. Salem says data centers are an allowed use in that zone, but the proposal would still have to go through the city’s formal development, planning, building, utility, and regulatory processes if Verrus moves forward.
How the project became public
Salem posted initial project information on July 14, 2026, and updated the page on July 19. The city says it was released from a nondisclosure agreement on July 8 and that the city manager informed the City Council and the community at the July 13 council meeting.
According to city materials, the city held one introductory meeting, a second consultation about Salem’s development process, and three technical meetings with Verrus. Those discussions addressed proposed site design, transportation access, anticipated utility needs, environmental considerations, and a possible conservation easement to preserve heritage oak trees.
The existence of the nondisclosure agreement does not establish wrongdoing. City materials describe it as part of the early, due-diligence stage of discussions and say the city later disclosed information after its confidentiality obligations ended.
What the July 27 council briefing means
Salem’s July 27 City Council staff report was informational. It gave councilors and the public background on the proposal, but it was not a final land-use decision, building approval, or authorization to begin construction.
The city’s published materials say the proposal would likely move into a formal development application process only if the company decides Salem is a viable site for a potential investment. The council briefing therefore helps explain the proposal and the city’s process, but it does not settle whether the project will proceed.
What formal review could involve
If Verrus submits an application, Salem says the formal land-use process would provide an opportunity for public comment. Notice would go to the relevant neighborhood association and neighboring property owners, followed by a 14-day comment period. After a decision, the city says there would be a 15-day appeal period; an appeal could lead to a public hearing.
Future filings and technical reviews could address road access, traffic, utility connections, water and sewer capacity, stormwater, environmental protections, tree preservation, emergency access, construction impacts, and effects on nearby properties. Additional state or federal permits may also be required before construction.
Those questions are not resolved. The city says it has not yet received an application and has not yet received final projections for electricity demand, water use, wastewater, noise, backup generators, fire risk, or emergency-response needs.
Utility and community-benefit questions
Oregon’s broader debate over how data centers should contribute to electricity-system costs provides context for why power demand and ratepayer protections are being discussed. It does not establish that Oakline at Mill Creek would raise Salem utility bills or create a particular rate impact.
Salem says it and Verrus plan to negotiate a community benefits agreement, which could address issues such as workforce development, site improvements, residents’ digital access, and other community priorities. The city also says Verrus has expressed interest in a conservation easement for heritage oak trees. The terms, enforceability, and final scope of any such measures remain to be determined.
What residents and businesses should watch next
The most useful next documents will be a formal development application, planning notices, staff reports, technical studies, transportation information, utility filings, and any hearing schedule. Residents and businesses near Mill Creek can also watch for details about site access, construction timing, environmental safeguards, utility obligations, and heritage oak trees.
For now, the central fact is straightforward: Salem has disclosed a proposed data center concept, not an approved project. The city’s July 27 briefing did not authorize construction. Whether the proposal advances will depend on a formal application, technical findings, public input, required permits, and decisions still ahead.
Sources
- City of Salem project overview
- Salem Reporter local coverage
- FOX 12 Oregon report
- OPB utility-rate context
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