Salem, OR Data Centers & Crypto Mining: Data Center Zoning & Siting (2026)
Key Facts
- Permitted zones
- Industrial Commercial (IC) and Industrial Park (IP), by right
- IBC zone condition
- Permitted only inside a fully enclosed building
- Prohibited zone
- General Industrial (IG) zone bars data centers outright
- FMU zone
- Permitted only in the FMU zone's AU sub-area
- Governing section
- UDC Sec. 400.110(e), use 'Data center facilities'
- Max civil penalty
- $2,000 per day under SRC § 20J.150
Summary
Salem's Unified Development Code classifies data centers as a distinct 'data center facilities' use under UDC Sec. 400.110(e) and zones them by right in the Industrial Commercial (IC) and Industrial Park (IP) zones, allows them in the Industrial Business Campus (IBC) zone only inside a fully enclosed building, and bars them outright from the General Industrial (IG) zone.
(e)Data center facilities(1)Characteristics. Data center facilities are characterized by facilities that physically house computer systems and associated equipment dedicated to data storage and/or transmission. Data Center facilities serve users beyond those present on the site. Facilities may or may not be regularly staffed by employees on-site. Facilities often include redundant or backup power supplies; redundant data communications connections; environmental controls, such as air conditioning and fire suppression; and security devices.(2)Examples. Carrier hotel; co-located server hosting facilities; co-location facilities; computer centers; data farms; data storage and hosting facilities; data warehouses; server farms; telecommunication hotels; telecommunications carriers.(3)Exceptions.(A)Data storage and transmission facilities serving an individual use on-site is considered accessory to that use.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 26 Update 1).
Full Breakdown
Salem's UDC Sec. 110(e) defines data center facilities as sites that physically house computer systems and associated equipment dedicated to data storage or transmission, serving users beyond those present on site, and lists carrier hotels, co-location facilities, data farms, data warehouses and server farms as examples. Where a project can actually be sited depends on the zone-by-zone use tables in UDC Division 500. Table 551-1 (Sec. 005) permits data center facilities outright (P) in the Industrial Commercial (IC) zone, and Table 553-1 (Sec. 005) does the same in the Industrial Park (IP) zone, with no extra building condition attached.
Table 552-1 (Sec. 005) also lists the use as permitted in the Industrial Business Campus (IBC) zone, but only 'provided they are conducted within an enclosed building,' so any outdoor cooling equipment or generator bank tied to the facility must still fit inside that enclosed-building test. Table 554-1 (Sec. 005) prohibits (N) data center facilities entirely in the General Industrial (IG) zone, the one heavy-industrial zone where the use is not allowed at all. In the Fairview Mixed-Use (FMU) zone, Table 530-1 (Sec. 040) permits data centers only in the Auxiliary Use (AU) sub-area, marking them prohibited (N) in the LI, MI, and VC sub-areas of that same zone.
Data centers are not listed as an allowed use in any residential, agricultural, or standard commercial zone table, so a developer needs a site already zoned IC, IP, IBC, or the FMU AU sub-area, or must pursue a zone change or UDC text amendment through the Planning Administrator before applying for a building permit. Individual server racks that only support an on-site business, rather than serving outside customers, are exempt as accessory to that business's primary use.
Violations & Fines
Operating a data center facility in a zone where UDC tables list it N, such as General Industrial or a non-AU FMU sub-area, is a code violation. Under SRC § 20J.140, the enforcement officer issues an order giving at least ten business days to correct it before a civil penalty attaches; SRC § 20J.150 caps that penalty at $2,000 per day the violation continues, and SRC § 20J.190 gives the property owner 15 business days to appeal to the City's Hearings Officer.
Frequently Asked Questions
Can I put a data center anywhere in Salem?
Does the Industrial Business Campus zone have extra requirements?
Why can't I build a data center in Salem's General Industrial zone?
Sources & Official References
Other rules in Salem
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