A California-based technology firm this week revealed plans for a large data center complex in southeast Salem, setting off a mix of local enthusiasm for jobs and revenue and apprehension over the facility’s environmental and utility demands.
What Verrus is proposing
Verrus announced its Oakline at Mill Creek project on July 13 for a site at Turner Road and Deer Park Drive SE inside Salem’s Mill Creek Corporate Center. Company materials describe a campus that would include three buildings and a utility substation. City officials say the property is zoned industrial and that a data center is one of the permitted uses.
City officials outline benefits and vetting
Salem City Manager Krishna Namburi told the council the city entered a non-disclosure agreement with Verrus after the company approached Salem through the economic development group SEDCOR in March 2025; the agreement was lifted before the public announcement.
"The city's role is to ensure that both potential benefits and impacts are carefully evaluated and any development aligns with our community's long-term interests," she said. "We will also work with the company to develop a community benefits agreement that provides meaningful benefits to the Salem community."
Officials estimate the project could add about 75 permanent, high-paying jobs in Salem and would represent a private investment of $5.1 billion. City figures provided by Namburi project roughly $9 million in one-time revenue to the general fund and about $1.5 million annually for the community livability levy, if the development proceeds as modeled.
Concerns from residents and advocates
At a Salem City Council meeting responding to the announcement, supporters emphasized long-term construction and trade employment opportunities — carpentry, electrical and other building trades tied to a yearslong construction program. Opponents raised questions about the data center’s potential water and electricity use, and broader environmental and neighborhood impacts that data centers have drawn in other communities nationwide.
- Supporters: local jobs during construction and operation; increased tax base.
- Opponents: possible strain on water supply and electricity, noise and other environmental effects.
- City response: formal planning, development and regulatory review; evaluation of water consumption and a community benefits agreement.
Numbers at a glance
| Item | Figure |
|---|---|
| Estimated private investment | $5.1 billion |
| Potential permanent jobs | 75 |
| City's current tax base (reported) | $16.7 billion |
| Projected one-time revenue to general fund | $9 million |
| Projected annual for livability levy | $1.5 million |
City staff said Verrus has asserted the facility would be a low-water-consumption design, and staff will carefully review water use estimates to determine whether the project could risk long-term supply. The proposal still must move through Salem’s standard permitting and regulatory processes before any construction can begin.
As Oregon and other Western states wrestle with growing demand for data center capacity, local leaders face trade-offs between attracting large private investment and safeguarding municipal utilities, neighborhood quality of life and environmental goals. Salem’s upcoming review will test how those competing priorities play out at the city level.
