Salem Council to Consider AI Data Center Moratorium Tonight After Oakline Filing

Verrus subsidiary Alderstone filed plans Friday for two data center buildings covering 600,000 square feet on 100.2 acres in southeast Salem.

Salem Council to Consider AI Data Center Moratorium Tonight After Oakline Filing

Verrus subsidiary Alderstone filed plans Friday for two data center buildings covering 600,000 square feet on 100.2 acres in southeast Salem.

Salem City Council will meet in a special session Monday night to decide whether to begin work on a temporary moratorium and new zoning rules for artificial intelligence data centers.

The meeting comes three days after Alderstone LLC, a subsidiary of data center developer Verrus, submitted a formal land-use application for its Oakline at Mill Creek project. The city lists the application as pending.

The filing seeks approval for two one-story data center buildings with a combined footprint of 600,000 square feet, along with equipment yards, parking areas and a separate lot for a future electrical substation. The application covers three properties at 4610, 4625 and 4720 Mill Creek Drive SE.

The three sites total 100.2 acres and are listed as vacant. Capstone Mill Creek Logistics LLC and Scannell Properties are identified as the property owners. The application places the project valuation at $394 million and includes a Class 3 site plan review, a replat, a zoning adjustment and two driveway approaches.


That filing is different from the concept Verrus initially presented publicly, which called for as many as three buildings on roughly 75 acres and more than $5 billion in potential investment. Verrus has not yet announced whether the two-building application represents a revised campus or the first phase of a larger development.

Filing follows state land decision

The application was submitted Friday, one day after Gov. Tina Kotek directed the Oregon Department of Administrative Services to terminate its contract to sell approximately 32 acres of state-owned land at the Mill Creek Corporate Center for the proposed data center.

Kotek said economic growth and technology investment must make sense for the surrounding community, infrastructure and natural resources. The three properties included in Alderstone’s new filing are owned by private companies rather than the state.

What council will decide tonight

Council’s agenda calls for consideration of Resolution 2026-36, which would initiate a moratorium on AI data centers and begin amendments to Salem’s zoning code regulating the facilities.

Tonight’s decision is not a vote to approve or deny Oakline. The immediate question is whether Salem should begin the legal and planning process needed to pause certain data center development while permanent regulations are considered.

A major unresolved issue is how any future moratorium would affect Alderstone’s pending application. The filing was submitted before tonight’s meeting, but the city has not approved it or assigned a case number. Its status and the final wording of any moratorium could determine whether the proposal continues through the existing review process.

The special meeting begins at 6 p.m. at Loucks Auditorium inside Salem Public Library, 585 Liberty St. SE. The city is preparing for higher-than-normal attendance. In-person testimony registration will be open from 5 to 6 p.m., and the meeting will also be streamed online


Frequently asked questions

What is being proposed at the Oakline site?

The application seeks approval for two one-story data center buildings with a combined footprint of approximately 600,000 square feet, along with equipment yards, parking, driveways and land for a future electrical substation.

Where would the data center be located?

The application covers properties at 4610, 4625 and 4720 Mill Creek Drive SE in Salem’s Mill Creek Corporate Center.

Has Salem approved the project?

No. The application is pending and has not been approved. The city must review the site plan, land division, zoning adjustment and driveway requests before making a decision.

Would tonight’s vote immediately stop the project?

Not necessarily. Council is considering whether to begin the process of creating a moratorium and new zoning rules. The final scope, timing and effect of any moratorium would depend on later council action and its legal wording.

Why does the July 31 filing matter?

The application was submitted before council considered starting the moratorium process. That timing could affect whether Oakline is reviewed under existing rules or becomes subject to future restrictions.

What happened to the state-owned land connected to the project?

Gov. Tina Kotek directed the state to terminate a proposed sale of approximately 32 acres for the development. The properties included in Alderstone’s current application are privately owned.

When and where is the meeting?

The special Salem City Council meeting begins at 6 p.m. Monday, Aug. 3, at Loucks Auditorium inside Salem Public Library, 585 Liberty St. SE.