City Council puts hold on data centers to study electricity, water use

The Oklahoma City Council has unanimously voted to impose a temporary moratorium on new data center projects, effective immediately until December 31, 2026. The emergency resolution aims to provide city staff with time to thoroughly evaluate the potential impacts of large-scale data centers on municipal utilities and resources, including water and electricity consumption, noise issues, and infrastructure. City Manager Craig Freeman explicitly requested the hold, citing concerns about hyperscale data centers placing significant demand on city resources. The moratorium will not affect two upcoming data center projects that have already begun the rezoning process. OKC Planning Director Geoff Butler noted that while substantial research on data center regulations has already been conducted, further work is needed to consolidate these into a comprehensive framework for the city's new Municipal Code. The decision comes amidst rising national concerns regarding data centers' environmental impact and resource strain, particularly with the rapid growth of AI. Taylor Sanchez, representing the Indigenous-led environmental nonprofit Honor the Earth, spoke before the council, advocating for the moratorium to address the rapid proliferation of data center proposals across Oklahoma, which she argued is outpacing regulators' and communities' ability to understand their impacts. Trevor Francis, overseeing an expansion project for Expand's central plant in OKC, expressed concerns that the moratorium could inadvertently hinder his project, which includes expanding the data center footprint. He claimed their data center uses no public grid power and employs closed-loop water cooling. Following his statements, City staff indicated they would quickly develop exemptions for smaller-scale, existing data center projects like Expand's, but Mayor David Holt rejected a two-week postponement of the moratorium, fearing a rush of new applications.