Data center firm Verrus is attempting to move forward with its planned campus in Salem, Oregon, despite the state governor’s attempt to block the project. The company is also now contending with a local moratorium on new data center developments in the city.. – Verrus. Verrus, a data center developer backed by Alphabet spin-out Sidewalk Infrastructure Partners, was planning a three-building campus on land in Marion County, some 45 miles south of Portland.
Full details of the project hadn’t been shared, but the first phase was set to offer “dozens” of megawatts on a 75-acre site.. However, Oregon Governor Tina Kotek stepped in this week to block the sale of 32 acres of land owned by the state to Verrus. In her announcement, Governor Kotek said that “growth has to make sense for the community, for our infrastructure, and for our natural resources.”.
In statements to local press, Verrus said it was “greatly disappointed” in the decision. But despite Governor Kotek’s intervention, Verrus seems set to carry on and attempt to develop the project without the 32 acres of state-owned land.. Via Alderstone, LLC, Verrus has filed with the City of Salem to develop two one-story buildings with a total combined footprint of 600,000 sq ft (55,740 sqm)..
Despite initially saying the project represented “potential opportunity” for Salem, city officials have changed their tune in the wake of pushback from local residents. Salem city councilors this week voted unanimously to start the process to introduce a moratorium on data center development in the city.
The block could last from 120 days up to six months.. Sidewalk Infrastructure Partners was formed out of Sidewalk Labs in 2019 as an independent entity out of Alphabet; it is also funded by the Ontario Teachers’ Pension Plan (OTPP) and private infrastructure fund StepStone Group..
Sidewalk Infrastructure Partners launched Verrus in 2024. The company aims to develop grid-reactive data centers that can flex their energy use depending on the needs of the grid. The company is also known to be targeting an 180-acre project outside Detroit in Lyon Township, Michigan, known as Project Flex..
Verrus had said the Salem campus would use a closed-loop cooling system to reduce water use and lithium iron phosphate battery storage for primary backup power to reduce emissions. The campus would dynamically reduce energy when the grid is most stressed via close coordination with utility partners such as Portland General Electric through the startup’s Stabiligrid technology..
DCD has reached out to Verrus for comment. Update: Verrus told DCD it remains “committed to working with the city, the state of Oregon, impacted Tribes and the Salem community to address the valid concerns being raised about generic data center development in Oregon.”.
The company said: “Verrus is proud to submit a proposed site plan application for Phase 1 of Oakline at Mill Creek. This submission now enables both the land use experts at the City of Salem and community members at large to apply local scrutiny to Verrus’ innovative site design, infrastructure approach, and environmental considerations for the first phase of a proposed multi-phased project.”. “Our team remains confident that, by working together, we can advance Phase 1 while identifying a path for the full project to align with Oregon’s values and set a high standard for responsible data center development in the state.”.
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