Salem considers $5.1B data center with novel cooling design

Salem evaluates one of Oregon's largest private investments

Salem city officials are reviewing a $5.1 billion data center proposal that would rank among the largest private investments in the city's history, according to details first reported by KATU News. California-based technology company Verrus has proposed Oakline at Mill Creek, a 75-acre campus in southeast Salem designed to support cloud computing and artificial intelligence workloads.

The three-building facility would be located in the Mill Creek Corporate Center near Turner Road SE and Deer Park Drive SE. The proposal remains in early review stages and has not received city approval.

Why it matters

The proposal arrives as Oregon grapples with data center expansion—the state already hosts more than 100 facilities, concentrated primarily in the Portland metro area. Salem's response could establish precedent for how mid-sized cities balance economic development against infrastructure strain and environmental concerns, particularly as AI drives unprecedented demand for computing capacity.

Technical approach differs from conventional designs

Verrus CEO Nelson Abramson told KATU that the company designed the facility specifically to address common community concerns about data centers. The proposal incorporates battery energy storage systems, a closed-loop cooling mechanism intended to reduce water consumption, and technology enabling the facility to curtail electricity demand during peak grid stress periods.

The company has committed to funding any necessary infrastructure upgrades and has not yet released specific water or electricity usage estimates, stating those figures will be available when formal site plans are submitted.

The site carries Employment Center zoning, where data centers are permitted uses under Salem's development code, eliminating the need for rezoning.

Economic projections and community response

Preliminary city estimates suggest the project could generate approximately $9 million annually for Salem's general fund plus an additional $1.5 million for the Community Livability Levy. Verrus projects 75 permanent positions and years of construction employment.

At Monday's city council meeting, representatives from the North Coast States Carpenters Union and IBEW Local 280 voiced support, emphasizing stable employment opportunities. However, residents raised concerns about water consumption, electricity demand, noise, and environmental impacts.

Salem resident Debbie Robley questioned the need for additional data centers given Oregon's existing 147 facilities and their environmental footprint. Other residents criticized the lack of advance public notice, as the project was not listed as a formal agenda item.

City Manager Krishna Namburi explained that Verrus first approached Salem through the Strategic Economic Development Corporation in March 2025, with the city entering a non-disclosure agreement during initial site evaluation—a standard practice for major investment discussions.

The city intends to negotiate a community benefits agreement with Verrus if the project advances through Salem's standard planning, engineering, utility, and regulatory review processes. This would mark Salem's first major data center campus and one of the first large-scale facilities in the Mid-Willamette Valley.

Details were first reported by KATU News.