Behind the Data Center Project: How SEDCOR’s Process Really Works
By Erik Andersson, President, SEDCOR
Recent coverage about a proposed data center project in Salem has raised questions about how economic development deals come together, particularly around the use of non-disclosure agreements. I want to take a moment to walk through how this actually works, because the process is neither unusual nor unique to this project.
Our work is mostly about businesses already here
SEDCOR has a mission of bringing new jobs and investment to the Willamette Valley region, specifically Marion, Polk and Yamhill counties. While business recruitment gets a lot of attention, the majority of investment and new jobs in our region come from businesses that are already here. That's why SEDCOR prioritizes business retention and expansion in our work plan. We've been proud to have been involved with a variety of expansion projects in the area over the years, working with companies like Garmin AT, Yamasa, Don Pancho, Oregon Fruit, Shinsegae Foods, Don Froylan creamery and many others.
What business recruitment looks like
SEDCOR is also involved in business recruitment. This generally means working with site consultants, along with our partners like Business Oregon, local governments, utilities and commercial realtors, to identify sites that meet the needs of prospect clients. In some cases, the client requires SEDCOR to sign a non-disclosure agreement (NDA) to allow the company to do its due diligence without fear of information leaking to competition. NDAs are routine in economic development as clients work with organizations like SEDCOR and communities to see if the needs of their project can be met (e.g. appropriately zoned land and/or building, infrastructure, skilled workforce, etc.). We generally only promote sites that are listed as for sale and zoned for the business use in question. At this stage we are also often asked about available economic development incentives such as the Enterprise Zone or job training programs.
How SEDCOR evaluates whether a project is a fit, and why some projects don't move forward here
SEDCOR doesn't select projects based on our preference, and it isn't our role to decide whether a legally permitted, traded-sector business is one our community should welcome. What we do is help every interested company assess, honestly and early, whether its needs match what our region can actually support. That means asking direct, sometimes hard questions upfront: how much power will this project require, how much water, what does the site need to look like, what workforce does it depend on.
Not every company that inquires about our region turns into a project here, and that's exactly the point of asking those questions early. If a project's needs don't align with our infrastructure or resources, that mismatch usually becomes clear well before any public announcement, and the project simply doesn't move forward in our region. That isn't SEDCOR picking winners. It's the fit assessment working as intended.
That's also what happened with the Verrus project now under review at the Mill Creek Corporate Center. SEDCOR and city staff asked about the company's needs, the scope of the project, and its potential community impacts from the earliest conversations. The first substantive question was about water use, given ongoing concerns tied to the Detroit Lake drawdown. Verrus's approach, including a closed-loop cooling system designed to significantly reduce water use, was part of what made the project's needs compatible with what our region can support. When Portland General Electric announced in 2023 its planned improvements to the Bethel to Round Butte transmission line, connecting generation resources east of the Cascades to customers in the Willamette Valley, SEDCOR received several referrals and inquiries from data center consultants and real estate firms seeking sites in the Salem area. Most of these projects did not move forward because their needs and our resources weren't a fit for the area, not because of a judgment call by SEDCOR about which company deserved to be here.
Where the community's voice comes in
If a traded-sector business is seeking to develop a project on private land that is appropriately zoned and whose needs fit our region's resources, it is not SEDCOR's role to make a value judgment about whether that company is wanted. That is not a precedent we want to set. What is our role, and the role of local government, is to make sure the public process works as it should. That's why the site plan review process exists, why community meetings are being held, and why residents will have a real opportunity to ask questions and weigh in as this project moves forward. We take that seriously, and we encourage anyone with questions or concerns to take part in that process.
Media Inquires - Please reach out to SEDCOR's Marketing & Engagement Manager - Naureen Khan at naureen@sedcor.com