$5.1 Billion Oregon AI Data Center Project Paused After Intense Local Protests
The city of Salem, Oregon, has suspended all data center development for one year, putting Verrus's proposed $5.1 billion "Oakline at Mill Creek" AI data center campus on hold. This decision followed a chaotic six-hour public meeting where local protesters brought a guillotine and confronted company representatives. This incident highlights the escalating societal and environmental friction surrounding the rapid expansion of AI infrastructure, particularly regarding its massive energy and water demands. It demonstrates that tech companies face significant local resistance and regulatory hurdles even when proposing grid-friendly designs. The planned 75-acre campus in the Mill Creek Corporate Center was designed to feature three data center buildings and a utility substation. The developer, Verrus, backed by Sidewalk Infrastructure Partners, claims the facility was designed to support the local power grid and conserve water, unlike legacy data centers.
## BACKGROUND
The rapid rise of artificial intelligence has triggered a massive boom in data center construction, which requires vast amounts of electricity for computing and water for cooling. Oregon has become a major hub for these facilities due to favorable tax policies and access to cheap power. However, local communities are increasingly pushing back over concerns about resource depletion, noise pollution, and strain on the public utility grid.