Salem Council Halted Data Center Construction

The city implemented a 120-day moratorium to block a planned AI facility in the local corporate center.

Updated on Sept. 22, 2026 in Data Centers

Isometric editorial illustration of a heavy industrial power grid and concrete data facility, depicting a regulatory pause in infrastructure development. — The Salem City Council approved a 120-day moratorium on new data centers on Monday, halting construction on a $5.1 billion AI project. AI Illustration. Upload story photo >

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The Salem City Council approved a 120-day moratorium on new data centers on Monday night. This emergency measure effectively stopped the initial construction phase of a proposed $5.1 billion AI data center campus.

Why it matters

The decision provides the city a window of time to evaluate the development of high-energy infrastructure projects. It places a significant hold on a massive investment that was slated for the Mill Creek Corporate Center.

The stalled project involves a $5.1 billion AI data center campus planned for the Mill Creek Corporate Center. The moratorium currently mandates a 120-day halt on all new construction activity.

The players

Salem City Council

This is the primary legislative body responsible for municipal policy and zoning decisions in the city of Salem.

Verrus

This is the developer currently leading the construction of the AI data center campus in the Mill Creek Corporate Center.

The details

Verrus was forced to stop work on the first phase of the development following the Monday night vote. The city has the option to extend this regulatory pause for an additional six months before the end of the year.

September 21, 2026: The City Council passed the moratorium.
End of 2026: Deadline for councilors to potentially extend the moratorium for six months.

The Tech Race

The Salem moratorium aligns with a broader trend of municipal pushback against the rapid expansion of power-hungry AI infrastructure. As cities navigate the demands of high-density computing, this move reflects an ongoing tension between local development and the national infrastructure surge.

Residents may see an immediate cessation of construction noise and heavy equipment activity at the Mill Creek Corporate Center site. The decision provides local officials the time to review how these facilities impact the community's energy grid and resources.

The takeaway

The pause in Salem highlights the increasing scrutiny facing massive AI infrastructure projects across the country. Local authorities are increasingly asserting their power to slow down industrial development to ensure it aligns with municipal long-term planning.