Oklahoma bill pushes grid costs to data center companies

Oklahoma state lawmakers have approved HB 2992, a significant bill that would compel data centers and other substantial electricity users to cover the costs associated with connecting to the power grid. The legislation, which applies to customers planning to use more than 75 megawatts, mandates payment for new infrastructure such as wires, poles, substations, and power plants, according to state Rep. Brad Boles, the bill's author. The measure has been forwarded to Republican Gov. Kevin Stitt for his approval. Oklahoma currently boasts some of the nation's lowest power rates, averaging 9.36 cents per kilowatt-hour in February, about one-third less than the national average. This affordability has historically attracted major data center developers, particularly from the artificial intelligence and cryptocurrency sectors. However, the state has seen increasing opposition from residents concerned about rising energy costs and strain on water supplies due to new data center projects. In response to these pressures, some Oklahoma cities have already implemented temporary bans on new data center developments.