Oregon governor puts the kibosh on plans for Salem data center

Oregon Governor's Office

Oregon Gov. Tina Kotek canceled the proposed sale of 32 acres of state-owned land that was part of a plan for a proposed data center project.

On Thursday, Kotek directed the Department of Administrative Services to terminate a pending land sale contract with Verrus, a California-based company funded by Google that proposed a 75-acre data center at the Mill Creek Corporate Center in Salem.

"This decision is about my responsibility to make sure state actions reflect Oregon's values and serve the public interest," Kotek said in a statement.

The move comes after a contentious public hearing held by the Salem City Council on July 27 that dragged on for hours, with community members opposing the project. The city plans to hold a special meeting on Monday to discuss a possible moratorium on data center projects.

"I believe in growing Oregon's economy and welcoming new investment, including in the technology sector," Kotek said. "But growth has to make sense for the community, for our infrastructure, and for our natural resources. Oregonians have made it clear they expect thoughtful, responsible decisions about projects of this scale, and I agree."

In January, Kotek convened the Statewide Data Center Advisory Committee to develop policy recommendations to take advantage of the economic development opportunity created by data centers and other large load industrial consumers of electricity, while striving to keep utility costs, infrastructure upgrades, and environmental impacts sustainable, particularly for low-income and working households and ratepayers.

Oregon is not alone in evaluating both the promise and the potential burden data centers can bring to a community.

The centers have the potential to bring increased utility costs and pressure water resources.