Space meant to relieve power congestion is attracting data center developers
Data center developers are targeting a key electrical substation near Piedmont in Kingfisher County, Oklahoma, due to its robust power grid connection, driven by the high electricity demands of AI. This has sparked local opposition in several communities and led to temporary development moratoriums in Oklahoma City and Edmond. State lawmakers have also passed legislation to ensure data center developers cover their infrastructure costs.
The Mathewson Substation in southeastern Kingfisher County, Oklahoma, near Piedmont, has become a prime target for data center developers like Houston-based Cloverleaf Infrastructure and Atlanta-based Beltline Energy. This location, at the western terminus of a new $72 million transmission project, is highly sought after for its strong connection to Oklahoma's electrical grid, essential for the massive power requirements of AI data centers.
While this infrastructure was initially designed by the Southwest Power Pool to relieve power congestion in the Oklahoma City metro area, it is now attracting a different kind of growth. Beltline Energy has proposed projects in Piedmont, Yukon, Oklahoma City, and Luther. Cloverleaf Infrastructure's chief development officer, Aaron Bilyeu, highlighted the site's excellent electrical engineering profile as key to their land optioning. Jonathan Abebe, Cloverleaf's CTO, noted that new AI facilities can consume hundreds of megawatts, making existing robust transmission systems incredibly valuable as new projects take years to build.
This surge in interest has generated local debates, with residents in communities such as Piedmont, Yukon, and Luther raising concerns about project size, water usage, noise, traffic, and transparency regarding nondisclosure agreements. In response, Oklahoma City and Edmond have enacted temporary moratoriums on new data center applications while reviewing zoning and development standards. Landowners along the Mathewson-Redbud transmission route have also expressed concerns about the impact of new 110-foot transmission structures on their property.
Oklahoma lawmakers have taken action to address the changing landscape. Representative Brad Boles, R-Marlow, noted the passage of House Bill 2992, the Data Center Consumer Ratepayer Protection Act, which ensures large-load customers bear their own infrastructure costs, protecting residential consumers. Additionally, Senate Bill 480, the "Behind the Meter" law, was approved in 2025 to encourage businesses to develop their own generation facilities, easing grid pressure. State officials, including Jay Shidler of the Oklahoma Department of Commerce, confirm that power availability is now the primary factor in data center site selection, influencing both economic development and grid planning strategies across the central United States.