Massive AI data center proposed for southeast Salem draws scrutiny
City officials this week revealed plans for a proposed $5.1 billion artificial intelligence data center campus that would occupy 75 acres near Turner Road SE and Deer Park Drive SE in southeast Salem. The project, called Oakline at Mill Creek, was presented publicly after a 16‑month confidentiality agreement between the city and California‑based Verrus Ltd. ended in July.
The proposal describes a campus with three data center buildings, an electrical substation and supporting infrastructure designed for high‑density AI computing. Verrus says the design is tailored to AI workloads and includes technologies aimed at reducing water consumption, limiting emissions and coordinating with the local electrical grid.
What officials disclosed and when
On July 13, Verrus launched a public website outlining its plans, and Salem City Manager Krishna Namburi presented the concept during a City Council meeting the same day. City documents show discussions between Verrus and Salem began in March 2025 under a nondisclosure agreement. The confidential review period allowed the two parties to continue talks while evaluating the project concept, city officials said.
Local questions: energy, environment and transparency
The announcement immediately prompted a mix of reactions. Supporters point to potential job creation and additional tax revenue. Others raised concerns about the project’s projected electricity demand, environmental effects on local land and waterways, and the length of the confidential review that limited public visibility until the July announcement.
- Project name: Oakline at Mill Creek
- Proposed investment: $5.1 billion
- Site: 75 acres, Turner Road SE and Deer Park Drive SE
- Main features: three data center buildings, electrical substation, AI‑specific infrastructure
- Confidential review: 16 months (began March 2025)
How this fits into broader trends
The Oakline proposal arrives amid a wave of interest in large data centers across Oregon and the West as companies chase cooler climates and grid capacity. For Salem, a project of this scale would be among the largest private investments the city has seen, making the local debate part of a statewide conversation about how to balance economic development with utility capacity, environmental stewardship and public engagement.
| Fact | Detail |
|---|---|
| Investment | $5.1 billion |
| Acres | 75 |
| Buildings | 3 data center buildings plus substation |
| Confidential review | 16 months (March 2025–July 2026) |
City leaders and Verrus will now face decisions about public hearings, environmental review, utility interconnection studies and possible incentives or permits. Residents concerned about the scale of the development are expected to press the City Council for detailed modeling of the project's electricity use and environmental impacts. Utilities and state regulators may also be drawn into the review if the campus seeks significant new power capacity.
The coming weeks are likely to include requests for additional information from the city and the company, formal land‑use applications and public comment opportunities. For Salem, the Oakline concept is more than a single project: it tests local processes for handling large, technically complex proposals and how the city weighs immediate economic benefits against long‑term infrastructure and environmental consequences.
