Last updated: August 1, 2026 

**Update - August 1, 2026

Submitted Application 

Verrus through their subsidiary Alderstone, LLC has submitted a land use application with the City of Salem for their proposal on July 31, 2026. Status as of August 1, 2026 - Pending

**Update - July 19, 2026

Project Synopsis

Verrus, a new-wave data center developer, is exploring development of a potential data center operation to be located in the Mill Creek Corporate Center.  Their proposal is called Oakline at Mill Creek.  With new development comes questions from community members about possible benefits and implications. 

• Provide feedback on the Verrus data center project.
• Read the Staff Informational Report provided to City Council for the City Council meeting on July 27, 2026 (see item 5.1).

Questions and Answers Concerning the Verrus Project

Project Status

It can take time —sometimes years — from a company’s initial inquiry to site a facility in a community to proceeding through the development process. Responses to initial inquiries allow companies to evaluate available land for their proposed need, whether the employment base is sufficient and whether road, water, sewer and electrical capacity are sufficient to support the development. 

The proposal remains in the early stages. If the company considers Salem a viable site for a potential investment, they would likely move into a formal development application process. As a formal proposal moves forward, we will continue evaluating the fit of the company to our community. The proposal would be reviewed through the City’s planning, development, building, utility and regulatory processes which includes protections for heritage oak trees. In the formal stage, the status of a development application is accessible on the City’s website.   

The company operates as a developer and landlord, and leases space within the data center to end users. This is a common model around the country, and end users can range from one primary tenant to dozens of tenants. 

We understand the property is owned by the State of Oregon.  

The City was under a non-disclosure agreement. On July 8, 2026, the City was released from its non-disclosure agreement. At the next opportunity for the City Manager to address the full Council as well as the community in an open public forum at the July 13, 2026 Council meeting, the City Manager informed the Council about the project.  

Non-disclosure Agreement (NDA)

Read the executed Non-Disclosure Agreement and the City's release from the agreement.

Non-disclosure agreements are at the request of a company or developer typically during their due diligence period while they determine project fit and viability.   

When companies are evaluating potential locations for significant investments, they often request confidentiality during the early stages of discussions. This is a common practice in economic development because companies may be evaluating multiple locations and sharing proprietary information about their business plans, operations, technology, investment levels, or site requirements.   

As proposals move to more formal, public processes, those agreements are often lifted.  

The Verrus project is the only non-disclosure agreement that the City has entered into regarding data centers.  The City is not currently under other non-disclosure agreements with respect to data centers.   

Within this arena of economic development, the City has an annual non-disclosure agreement with the Oregon Employment Department for evaluation and planning of economic development programs.    

The City Manager signs non-disclosure agreements.  The non-disclosure agreement for this project was executed in March 2025, as the City Manager shared in her comments at the opening of July 13, 2026, City Council meeting.  

It is typical for projects that are early in development to remain at a technical staff level until they are ready to move to the formal permitting process. In June 2026, the City Manager was verbally updated that the proposal was moving forward to the next step and that the company would like to schedule a meeting with City Manager Namburi, SEDCOR, and PGE. Once informed of the project’s status, the City Manager took steps to seek the City’s release from the non-disclosure agreement so information about the project could be shared publicly.   

On July 8, 2026, the City was released from its non-disclosure agreement. At the next opportunity for the City Manager to address the Council and the community in an open public forum, the City Manager informed the Council about the project (at the July 13, 2026, City Council meeting).   

How do companies approach the City when they may be interested in locating here? 

Read the Pre-Development Application Process and Activities

The City regularly works with prospective businesses through this type of process. These discussions typically involve the company, SEDCOR, Business Oregon, and the appropriate City technical staff. The purpose is to understand whether the necessary infrastructure exists for the company to operate, whether their type of use is allowed as well as the applicable land use requirements for the site, and whether there are other opportunities or challenges to be addressed specific to the site proposed for the use.   

How did Verrus approach the City with its proposal? 

As referenced in the City Manager’s opening remarks, on July 13, 2026, under the NDA, staff had one introductory meeting with the company, a second consultation meeting to discuss Salem's development process, followed by three technical meetings to understand proposed site design, proposed transportation access, anticipated utilities needed, environmental considerations, and one conversation about a conservation easement for the preservation of heritage oak trees.  

The company wants to be transparent about these conversations and has committed to releasing the details of its meetings with the City.  

Zoning and Land Use Process

Read the pre-application materials submitted by Verrus during the Discovery, Exploration, Education, & Due Diligence Period.

Read City staff comments on pre-application materials.

Read the follow-up meeting materials submitted by Verrus.

The first screening is whether the data center use is allowed in the area it is proposed.    

Data centers are an allowed use in land zoned for Employment Centers in Salem, like the Mill Creek Corporate Center. See a land use map for Salem and the Salem Revised Code reference for allowable uses in Employment Centers. This zone use has been in place since 2005.  The Unified Development Code, adopted in 2014, included data centers as an allowed use in Employment Center zones.  The Mill Creek Corporate Center was designed to host larger industrial companies and the Mill Creek Urban Renewal Area was formed in 2005 to prepare 828 acres for industrial development.   

The next screening occurs through the formal development review process.    

If the company considers Salem a viable site for a potential investment, they would likely move into the formal development land use and permitting process. As a formal proposal moves forward, we will continue evaluating the potential impacts of the project to our community. The proposal would be reviewed through the City’s planning, development, building, utility and regulatory processes which includes protections for heritage oak trees. In the formal stage, the status of a development application is accessible on the City’s website.    

If the company’s proposal meets the intent of the land use established in Salem Revised Code, this review remains administrative. Recent changes in State law restrict local governments from engaging in policy level review of this type of administrative land use proposals.  

The land use process will provide an opportunity for public comment. Public notice is provided of a formal development application, in accordance with State law, to the Neighborhood Association and neighboring property owners. There is a 14-day comment period.  

After a decision is issued, there is a 15-day appeal period during which an appeal could be filed and then there would be a public hearing.    

Once they have a land use approval (the application is not appealed or all appeals are exhausted) the applicant would then need to obtain construction permits for infrastructure and site development, as well as building permits. Additional state and/or federal permits may be required prior to construction.   

Members of City Council and staff are receiving comments and questions from constituents and the media.  We are adding questions and answers to our web page regularly.  There will be several opportunities to provide feedback on this project. The company has plans for community engagement.  Staff and the City Council continue to remain available for feedback on this project proposal.     

We have three primary opportunities to ensure that our community interests are protected: (1) through the development review process; (2) through a Community Benefits Agreement; and (3) conservation easement.  

Community Impacts

The City has not yet received an application from the company. Once a development application is submitted, we will continue evaluating the fit of the company to our community. The proposal would be reviewed through the City’s planning, development, building, utility and regulatory processes which includes protections for heritage oak trees. In the formal stage, the status of a development application is accessible on the City’s website.    

Through the pre-application process and more community conversations, the City makes sure the development projected for the site occurs in a way that fits with our community and directly benefits our community. The City and the company plan to enter into a community benefits agreement, or a legally binding, enforceable tool that allows communities to secure commitments from data center developers for things of community interest. In other communities, community benefit agreements may speak directly to workforce development, employment, site improvements, residents’ digital access, well-being and more.   

There are new tariffs specific to data centers so, adding this use won’t directly impact community electricity rates. The Oregon Public Utility Commission recently approved PGE request to establish a separate rate structure for large data centers. Under that decision, data center customers will see an average 29 percent increase in rates, while residential customers are expected to see an average 1.3 percent decrease. Verrus also participated in the rate structure discussions and supported the changes.  

We understand the company may be eligible for an enterprise zone tax abatement, having submitted to the Marion County Assessor on May 27, 2026.  Their request was approved for three years abatement. A standard three-year enterprise zone application does not require Council approval.   

The company anticipates bringing 75 permanent new high-paying jobs to Salem.   

The company’s investment in our community is projected to be more than $5 billion. The City’s current tax base is approximately $16.7 billion. The company’s investment would be taxable, and after the first three years, those tax revenues would flow to the City’s General Fund to help pay for City services like Police, Fire, and other services — as well as the Community Services Levy. A portion of the electric bill paid by the company would generate funds for General Fund services through the City’s Franchise Fee, which assesses 5 percent to all utilities using the City’s right of way. This fee is assessed on telephone, electricity, natural gas, cable providers and City of Salem utilities (water, wastewater and stormwater).  

Will there be other data centers moving into Salem? 

The potential for additional data centers is limited.  There are very few sites in Salem that have the necessary acreage and zoning to support data center development.    

Data centers vary significantly in size, design and operations. They can differ in energy demand, water use, cooling technology, employment levels and environmental impacts. Questions regarding electricity demand and potential impacts to other utility systems are important. Initial conversations suggest the proposed facility would be designed as a low-water-consumption data center.   

What have City leaders said about the project?

“Verrus’ proposal represents a potential opportunity for Salem. The City of Salem is committed to carefully evaluating the proposal and taking necessary steps to ensure it aligns with our community’s long-term interests,” said Krishna Namburi, Salem’s City manager. “As part of our normal processes, we will continue to evaluate the proposal’s economic benefits, infrastructure needs, environmental impacts and overall community considerations. We are encouraged by Verrus’ interest in protecting the environment at the proposed site, creating high-paying jobs for our future and contributing to a more diverse local economy. We will keep the community informed as the process moves forward.”

This article will be updated as more information becomes available.