Gov. Tina Kotek orders Oregon to withdraw land sale for Salem-area data center

Key Points:

• Oregon Gov. Tina Kotek ordered the state to cancel its land sale contract with California-based Verrus for a $5.1 billion data center near Salem, citing the need to manage public land in line with community benefits and state priorities.
• Kotek emphasized that while she supports economic development and technology sector growth, large projects must be carefully evaluated for impacts on infrastructure, water, energy, and natural resources.
• Verrus expressed disappointment, stating the decision was made without consultation and before they could present their plans addressing community concerns, including water and energy efficiency and local benefits.
• The data center proposal sparked intense public protests and divided opinions in Salem, with some residents and unions supporting the investment, while others raised environmental and social concerns, particularly related to artificial intelligence impacts.
• Salem City Council is set to discuss a potential moratorium on AI data centers, reflecting ongoing community debate about balancing technological growth with sustainable resource use and social implications.