City manager reports talks with Arris for Mill Creek data center; trades back project, residents raise ethics and environmental concerns

The city manager told the Salem City Council on July 13 that the city has been in talks with Arris about a proposed data center in the Mill Creek industrial area, according to remarks summarized at the meeting.

The announcement, made during council and city manager comments rather than as a formal agenda item, said the proposed facility would be sited in an industrial zone and would use a closed-loop water system intended to limit water use. Meeting remarks also said the project would include backup generators described as quieter to reduce noise impacts and that the city could see increased general-fund revenue and employment opportunities if the project proceeds.

The discussion matters locally because data centers can affect water use, noise, and power demand while also promising construction and long-term trade jobs. The city manager’s remarks, as reported in the meeting summary, did not include specific contract terms, employment counts, timeline, or voter approvals.

Ashley, a presenter with CC Media who summarized the meeting, said the presentation noted Oregon’s utility rules for large new power draws and that Portland General Electric’s structure can impose higher rates on major new customers to offset grid costs. "The expectation is the data center would see a 29% rate increase while the general public would not," the meeting summary said; no PGE rate schedule or supporting document was provided in the recorded remarks.

Supporters who spoke at the meeting included representatives of the carpenters’ guild and electricians, who argued the project could be a significant source of long-term employment for skilled trades if it is executed ethically. Opponents raised concerns about the company’s environmental claims and broader ethical questions about data centers, saying the company may not be as green in practice as it presented.

Speakers opposed to the proposal asked the council to add the Arris data center to a future meeting agenda so a wider set of residents could attend and comment; the council did not take a formal vote on the item during the July 13 session. The meeting recording and summary did not provide a company statement, contract text, or a timetable for any approval steps.

Next steps: the matter was requested for placement on a future agenda so there can be fuller public engagement and formal consideration; no formal action or vote on the Arris proposal was recorded at the July 13 meeting.