Kotek Cancels Sale of State Land for Proposed Salem Data Center

Salem, OR. — Gov. Tina Kotek has directed the Oregon Department of Administrative Services to terminate a contract to sell approximately 32 acres of state-owned land in southeast Salem for a proposed data center.

The property is located at the Mill Creek Corporate Center, an industrial and employment development site near Interstate 5. The governor’s announcement did not identify the proposed buyer, disclose the sale price or provide details about the planned data center.

Kotek said the decision reflected her responsibility to ensure state property is managed in the public interest and consistent with Oregon’s economic, infrastructure and natural-resource priorities.

“I believe in growing Oregon’s economy and welcoming new investment, including in the technology sector,” Kotek said. “But growth has to make sense for the community, for our infrastructure, and for our natural resources.”

The governor’s office said Kotek acted after learning about the proposed development. The announcement did not explain when the state entered the contract, how far the transaction had progressed or whether terminating it would carry financial consequences.

The decision comes as Oregon officials consider policies governing data centers and other industrial facilities that consume large amounts of electricity.

In January, Kotek created the Statewide Data Center Advisory Committee to develop recommendations for managing data-center growth. Its work is expected to address utility costs, infrastructure investments and environmental effects, particularly those affecting low-income and working households.

Data centers can generate investment and tax revenue, but their substantial electricity and water demands have raised questions about effects on utility systems, ratepayers and local resources.

Kotek said Oregon would continue pursuing economic-development projects that create family-wage jobs and strengthen regional economies while considering effects on housing, energy, water, transportation and quality of life.

The governor’s office did not say whether the state would seek another buyer for the Mill Creek property or consider a different use for the land.