OG&E and Google strike deal to power three Oklahoma data centers

OG&E announced a "landmark contract" to power three new Google data centers in Oklahoma. Under the agreement, Google will pay 100% of grid connection costs and guaranteed contracted payments, regardless of actual energy consumption. Christi Woodworth, vice president of communications for OG&E, emphasized that the utility's other customers would not bear these costs and that Google's large load could even spread fixed costs across a wider base, potentially leading to downward pressure on rates over time. Google's energy demands are projected to reach approximately one gigawatt by 2031. The agreement also includes Google making power generation capacity available from two solar facilities currently under construction. The Oklahoma Corporation Commission (OCC) will review the contract over the next 180-240 days, including a public comment period, and will monitor for any adverse customer impacts in future rate reviews. Despite the financial specifics, concerns persist regarding the data centers' substantial water consumption for cooling servers and whether the economic benefits truly outweigh environmental costs. Google's existing Pryor campus, comprising 14 data centers, reportedly used 1.1 billion gallons of water in 2024. JT Tolliver, data center operations site manager with Google, stated that the Pryor campus employs over 1,000 people, a figure higher than typical data center staffing, and noted that much of the water used in cooling evaporates and returns as rain. The job creation potential for the new Muskogee and Stillwater facilities, however, remains to be seen.