City of Salem Council Meeting - August 3, 2026

The Salem City Council held a special meeting on August 3, 2026, to consider a possible moratorium on AI data centers and changes to the city’s zoning code. Staff explained that the existing code treats data centers as permitted uses in many industrial zones and predates the current scale of AI facilities. Council and staff discussed potential effects on water, electricity, wastewater, transportation, noise, and other public resources, along with Oregon land-use requirements and the need for public notice, findings, and hearings. Staff said the city would evaluate the appropriate moratorium process and prepare code amendments addressing definitions, permitted-use status, zoning, standards, and review procedures. Council passed Resolution 2026-36 to initiate the zoning-code amendment process; the motion began that process and did not itself put a moratorium into effect.

Public testimony included both opposition to the proposed Varys/Alderstone data-center project and support for allowing projects to proceed through case-by-case review. Speakers raised concerns about water and power use, infrastructure costs, environmental and neighborhood impacts, transparency, and the project application submitted shortly before the meeting. Labor representatives emphasized construction employment, apprenticeships, and potential tax revenue, while urging the council not to impose a blanket pause. A speaker cited a projected $5.1 billion private investment and $10.5 million in annual city revenue after an enterprise-zone exemption, but these were claims made in testimony, not council-approved budget allocations. No procurement activity, contract award, or purchasing decision was identified.