Council hears why hyperscale centers need large substations or on‑site power

At the work session, developer Jim Conland explained that the defining constraint for hyperscale data centers is electricity. He said that facilities at the 350‑megawatt scale or larger must either be sited near "a very large substation" or include substantial on‑site generation. "The only place you can put a hyperscale data center is relatively close to a very large substation," Conland said, describing the Salem substation near the airport as an example of the kind of infrastructure required.

Councilors and staff queried whether behind‑the‑meter generation — turbines fueled by natural gas — would affect local gas supplies or utility rates. Conland responded that pipelines moving through the state carry substantial throughput and that federal regulators (FERC) require assurances that new withdrawals will not harm existing customers. He said a behind‑the‑meter plant would be structured so it "wouldn't affect your rates at all" for other customers, though he recommended the council request detailed flow and permitting data from utilities before making final conclusions.