Oklahoma Lawmakers Weigh Future Data Center Regulation

Oklahoma state lawmakers are currently undertaking a study to explore effective regulatory strategies for the burgeoning data center industry, following a session where nearly a dozen lawmakers heard testimony from operators, developers, environmental agencies, local officials, and concerned residents. The legislative effort, hosted by Rep. Mark Chapman (R-Broken Arrow), seeks a balanced solution amidst increasing demand for data centers driven by artificial intelligence and growing public apprehension over their impact on utility bills and extensive water consumption.

Several local governments, including Oklahoma City and the Seminole Nation, have already implemented moratoriums on new data center construction. Residents like Kaily Ball of Kingfisher County, who lives near a planned data center, have raised significant concerns regarding water use, noise, traffic, potential resource contamination, and rising energy costs, citing a lack of transparency and information.

Chris Neel from the Oklahoma Water Resources Board highlighted the substantial water demand of data centers, noting that Google's facility in Pryor uses millions of gallons daily. However, Pryor Mayor Zac Doyle defended the long-standing Google data center in his city, emphasizing its benefits through reduced utility bills, job creation, and local partnerships. Utility companies OG&E and PSO also presented, explaining how large load consumers like data centers can potentially lower energy costs for other ratepayers if responsibly integrated.

Lawmakers have previously enacted legislation, including House Bill 2992, which mandates new data centers to cover their own infrastructure and energy costs, and Senate Bill 259, requiring closed-loop cooling systems for groundwater use. Senate Bill 480, passed last year, grants data centers the option to build their own power plants.