What Does Oklahoma Have That Data Centers Want?
The article explores why Oklahoma attracts data center developers, highlighting cheap land and electricity. However, it points out a critical challenge: the state's pervasive drought conditions are making water, essential for data center cooling, increasingly scarce. This situation threatens Oklahoma's appeal as a location for future data center expansion.
Oklahoma has emerged as an attractive location for data center development, primarily due to its abundant and inexpensive land, coupled with some of the nation's cheapest electricity, which is generated from a mix of wind, natural gas, and solar. These factors, alongside a potentially favorable regulatory environment regarding permits, environmental rules, and tax incentives, create a compelling proposition for tech companies looking to invest billions.
However, a significant hurdle for this booming sector is the state's critical water shortage. Data centers house vast arrays of heat-generating computers that necessitate substantial amounts of water for cooling. Currently, Oklahoma is experiencing a severe, statewide drought, with every county affected to some degree.
This widespread scarcity of water directly conflicts with a primary need for data center operations. The article questions the long-term viability of Oklahoma as a prime data center hub if the resource these companies need most, water, is precisely what the state is lacking, despite its other attractive features.