Salem is staring down one of the biggest private investments in its history, and the city is anything but united about it. Verrus, a California-based developer, wants to build a $5.1 billion data center campus in southeast Salem, and the proposal has split residents into two loud camps. Labor unions and business boosters see jobs and tax dollars. Neighbors and conservation advocates see a massive new industrial neighbor and a lot of unanswered questions about water, power and public transparency. For now, the project is still under local review while officials and residents press Verrus for more detail.
Project overview
According to KATU, the project, branded Oakline at Mill Creek, calls for three data-center buildings and a utility substation aimed at supporting cloud computing, artificial intelligence and enterprise services. Verrus says the roughly 75-acre campus near Turner Road SE and Deer Park Drive SE would rely on battery energy storage, a closed-loop cooling system to limit water use, and technology designed to cut electricity demand during periods of peak grid stress.
Where it would go
Per the City of Salem's hearing agenda, the site at 4625 Mill Creek Drive SE (Marion County tax lot 082W080000400) is zoned EC, Employment Center, and is tied to recent land-use filings for the Mill Creek Corporate Center subdivision. City materials list the tax lot at about 54.18 acres. Employment-center zoning allows data centers as an outright permitted use, but a project of this size still has to clear staff review, administrative decisions and potential hearings before it can be approved.
Money, jobs and local reaction
Verrus and preliminary city estimates peg the financial upside as substantial. Staff calculations project roughly $9 million a year to Salem's general fund and about $1.5 million to the community livability levy, and Verrus says the campus would support about 75 permanent jobs. Supporters, including representatives from the North Coast States Carpenters and IBEW Local 280, told city officials the proposal would mean significant construction work plus long-term positions. Opponents have focused on environmental impacts, water supply and what they argue was insufficient early public notice. In a statement to KATU, Salem City Manager Krishna Namburi said, "At this point, the city is evaluating the proposal. We're not advocating or approving it right now."
Why it matters for Oregon's grid
State energy policy is reshaping how data centers pay for their power. Oregon's 2025 POWER Act lets utilities treat very large energy users differently, and regulators have approved a nearly 30% rate hike for Portland General Electric's biggest customers to help fund grid upgrades. As reported by Tom's Hardware, that policy shift makes it more likely that large developers will be asked or required to underwrite local infrastructure improvements, a role Verrus has emphasized in its own outreach.
Next steps
The Oakline at Mill Creek proposal remains under review by the City of Salem. Any staff reports or hearing dates will be posted through the city's planning materials and online portal. Residents who want to track the process or weigh in can monitor the city's published hearing agenda and land-use filings for the Mill Creek area for detailed documents and timelines.
