Governor Tina Kotek terminates state contract for controversial $5.1 billion data center project in Salem
Governor Tina Kotek has ordered the Oregon Department of Administrative Services to cancel the state's contract for a 32-acre land sale at the Mill Creek Corporate Center in southeast Salem. The land was slated for a $5.1 billion data center project proposed by the technology company Verrus. Kotek made the decision to ensure state assets are managed to reflect Oregon's values, specifically focusing on affordability and responsible economic development. While Verrus expressed disappointment that the decision was made unilaterally without a consultation, the company maintains its commitment to the project and intends to continue pursuing the development in Salem. The move follows intense public pushback from residents who expressed concerns regarding the project's impact on infrastructure, water, and energy resources. Salem City Council is scheduled to meet on August 3 to consider a moratorium on AI data centers and amendments to zoning codes. Kotek emphasized that while she supports technology investment, large-scale projects must be evaluated for their long-term impacts on the community and natural resources.