A loophole leaves Oklahoma data center water consumption largely untracked
Rural Oklahomans, particularly near Yukon and Oklahoma City, are raising concerns about water consumption and lack of transparency from data center developers like Beltline Energy, which plans a $15 billion campus. A state bill was passed to address water use, but a loophole allows data centers purchasing municipal water to bypass state permits, leading to untracked consumption. The proposed Beltline Energy project faces pending zoning approval in Oklahoma City and an unfinalized agreement in Yukon.
Residents across rural Oklahoma are expressing alarm over the proliferation of AI data centers and their potential impact on local resources, particularly water. A proposed $15 billion data center campus by Beltline Energy near the western edge of Oklahoma City and Yukon is a focal point of these concerns. Pencia Truhan, a local resident, voices common frustrations regarding noise, declining property values, rising electricity bills, loss of farmland, and a significant lack of transparency from developers regarding water usage.
Despite a bill (Senate Bill 259), signed by Gov. Kevin Stitt and authored by Rep. Carl Newton and Sen. Brent Howard, that aimed to regulate groundwater permits for data centers, a loophole persists. Data centers can circumvent state water permits by purchasing water from municipal utilities, leading to largely untracked consumption. Julie Cunningham, director of the Oklahoma Water Resources Board, confirmed that no data centers in the state have obtained water permits due to this loophole. This issue is particularly critical in Oklahoma, where drought has already strained agricultural commodities and the Ogallala Aquifer is in decline.
Beltline Energy's proposed 1,000-megawatt project, which would straddle Oklahoma City and Yukon, would significantly increase electricity and potentially water demand, comparable to Oklahoma City's average power use. While economic impact studies project substantial investment and jobs, the Yukon portion remains pending due to an unfinalized agreement, and the Oklahoma City portion awaits rezoning approval. Beltline Energy, an Atlanta-based company with other proposed data centers in Piedmont and Luther, has faced backlash for secrecy, including barring media from a community meeting and requesting non-disclosure agreements from local officials. In Luther, the town board enacted a moratorium on data centers through the year's end. Rep. Newton is working on a new bill to close the water permitting loophole, but the rapid pace of AI infrastructure development often outstrips governmental regulatory capabilities.