Oklahoma City pauses new data centers through end of year amid rapid growth, community concerns

The Oklahoma City Council has unanimously voted to enact a temporary moratorium on all new data center developments, effective until December 31st. This decision comes amidst a rapid influx of data center proposals across Oklahoma, including hyperscale projects, which city leaders and community members worry are outpacing regulatory capabilities and impacting the state's water supply and electrical grid. There are also concerns about a lack of transparency from developers, with reports of non-disclosure agreements being presented to city and tribal officials. City leaders proposed the moratorium to allow staff time to evaluate the situation, discuss with developers, and amend city codes to strategically and consistently address data centers. However, this moratorium poses a challenge for projects like the redevelopment of the old Chesapeake Energy campus, which includes a small-scale data center. Trevor Francis, representing the redevelopment group, stated that the pause would prevent the expansion of their central plant and make it difficult for tenants to occupy their buildings. City leaders acknowledge that smaller projects like Francis's are not the primary target of the moratorium, which aims at much larger, international data businesses, and they plan to amend the moratorium in the coming weeks to allow for exceptions for certain projects.