In early December, a massive $5.1 billion data center proect in Salem, Oregon, collapsed following intense local opposition. Protesters used a guillotine display to voice their disapproval of the California-based developer, Verrus. The resulting backlash prompted the Salem City Council to implement a moratorium and ban certain secrecy agreements.
The Guillotine Display at Loucks Auditorium
The public hearing held at the Salem Public Library's Loucks Auditorium took a dramatic turn when residents introduced a guillotine mounted on a trailer. According to the report, this provocative display was intended to signal that the community had no interest in the proposed 75-acre server farm. The spectacle was so intense that representatives from Verrus reportedly exited the meeting early, citing concerns regarding their personal safety.
The atmosphere at the venue was further strained by the absence of key local leaders. While the protest dominated the headlines, the mayor chose to attend the hearing remotely rather than in person, and two council members sent substitutes to represent them. This retreat by officials mirrored the broader sense of tension between the municipal government and the residents of Salem.
Missing water and power figures from SilverSphere Capital
Tensions during the hearing were exacerbated by a perceived lack of technical transparency from project backers. Aaron Stickney, a co-founder of SilverSphere Capital and a supporter of the project, faced significant criticism when he was unable to provide concrete data regarding the water and power requirements for the site along the Willamette River. This information gap was compounded by the fact that Verrus had already secured a binding contract for the land despite not yet filing a formal land use application with the city.
The combination of secrecy and a lack of technical clarity turned what should have been a routine planning discussion into a moment of intense civic assertiveness. Residents expressed deep concern that the clinical design of the project and its massive resource needs were being pushed through without sufficient public knowledge.
A unanimous vote to ban developer NDAs
The Salem City Council responded to the civic unrest by fundamentally changing how it interacts with industrial developers. In a unanimous decision, council members passed a motion banning the use of non-disclosure agreements (NDAs) in future development deals. This move was a direct response to the previous NDA signed between the council and Verrus,which residents argued was used to shield the project from necessary public scrutiny.
By removing the ability to use these secrecy contracts, the council aims to ensure that critical infrastructure projects are subbject to open public review. this legislative shift is intended to prevent developers from negotiating behind closed doors, a practice that many in Salem felt had undermined their ability to shape the future of their city.
The 120-day moratorium and the search for new oversight
To prevent further rapid industrial expansion without oversight, Salem officials have also implemented a 120-day moratorium on all new data center projects in the city. This legislative pause, combined with the creation of a new data center oversight task force, represents a significant shift in local governance .. As the report notes, the council is moving to ensure that large-scale industrial proposals are met with more rigorous scrutiny.
Despite these decisive steps, several critical details regarding the city's new oversight framework remain unaddressed. It is not yet known which specific individuals or experts will be appointed to the newly formed task force, nor has the city clarified the exact criteria required to lift the current 120-day moratorium. Additionally, the source does not confirm whether the city will face legal challenges from Verrus following the sudden collapse of the $5.1 billion proposal.
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