City Council’s data center exemptions raise questions of favoritism

The Oklahoma City Council has voted 7-2 to amend its temporary moratorium on new data center developments, allowing smaller operations and two specific projects to proceed with zoning and permitting applications. This decision followed significant advocacy from tech industry workers and representatives of data center operators who crowded council chambers to argue against the moratorium's unintended consequences and push for exemptions. Trevor Francis, CEO of Scale Datacenters and OKC agent for Dallas-based Tailwind Engineering, emphasized their $250 million investment in the city and job creation efforts.

Under the newly passed amendment, data centers using up to 75 megawatts of electricity are now permitted to apply for zoning and new construction. The council also specifically carved out dedicated exemptions for the Scale Datacenters facility on the Expand Energy (formerly Chesapeake) campus, which serves Cerebras AI, and the Rack59 Data Center at the 7725 Connect development. These exemptions mean these facilities can bypass the moratorium, which is otherwise extended through December 31, 2026, for larger "hyperscale" centers.

However, the decision raised concerns about favoritism, particularly from Ward 6 City Councilor JoBeth Hamon and Ward 2 councilor James Cooper, who cast the dissenting votes. Councilor Hamon questioned the rationale behind exempting specific properties when an established process already exists for property owners to apply for such allowances through the City's Board of Adjustment. She suggested that the mobilization of the labor force and personal connections influenced the council's decision, creating an appearance of special treatment. City Manager Craig Freeman clarified that the amendment only allows applications, not automatic approval, and facilities will still undergo full zoning and planning processes, including public input.