Salem pauses new data-center development as $5.1B proposal advances
Salem has announced a one-year pause on new data-center development while the city considers zoning and infrastructure rules, a move that comes as developer Verrus advances a proposed $5.1 billion facility in southeast Salem.
The project, called Oakline at Mill Creek, is proposed for the Mill Creek Corporate Center. The City of Salem describes it as a potential data-center operation, not an approved or guaranteed project.
The Salem City Council considered the one-year moratorium at a public meeting on Aug. 3, 2026. Later reporting described the city as announcing a pause that would halt new data-center development while officials review zoning rules for such facilities.
The available record does not include the final ordinance number, the council’s final roll-call vote or the full operative text of the moratorium. Those details are important for determining exactly which projects and applications are covered.
A major proposal still in an early stage
Salem’s July 14 project information page said Oakline at Mill Creek remained in an early stage. The city said formal planning, development, building, utility and other regulatory review would come later if Verrus determined that Salem was a viable location.
The city also said data centers are an allowed use in Employment Center zoning, subject to formal development review. That means the pause could affect how Salem evaluates future data-center proposals, but the available information does not establish that it automatically cancels or blocks Verrus’s project.
The city reported holding introductory, development-process and technical meetings with Verrus. Those discussions covered site design, transportation access, anticipated utilities, environmental considerations and preservation of heritage oaks.
The proposed site is within the 828-acre Mill Creek Urban Renewal Area, which the city says was prepared for industrial development. The project’s reported $5.1 billion value is a stated project scale, not a confirmed investment or completed construction cost.
Why the pause matters
The decision puts zoning and infrastructure questions ahead of the project’s next formal steps. Salem’s process would examine issues including access, utilities, environmental considerations and site design through the city’s development and permitting systems.
The city has not confirmed final electricity, water or wastewater demand figures for the proposed facility. Those impacts are to be evaluated through the formal application process rather than treated as settled facts at this stage.
The record also reflects heightened public attention. Tom’s Hardware reported that the council discussed the proposal at a July 27 public meeting. The report also said a company representative left a council meeting after a confrontation with protesters and was escorted out by police. The available sources do not establish additional details about the confrontation or identify any resulting legal action.
What happens next
The next clear steps depend on both the moratorium’s final terms and Verrus’s application status. The city’s July information page said no formal application had yet been received. Later reporting described an initial city-review filing, but the exact application type and current status were not established in the available record.
If a formal land-use application proceeds, the city says it would provide public notice and a 14-day public-comment period. After a land-use decision, the city’s stated process includes a 15-day appeal period.
For now, Salem is weighing new rules while a large proposed project remains in the pre-approval process. The moratorium’s final text, the city’s official vote record and the project’s permit file will determine how the pause applies in practice.
Sources
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