Pittsburg County committee endorses deal tied to 2,000-acre, $50 billion data center site

The Pittsburg County Review Committee has formally recommended approval of tax increment finance (TIF) districts for "Project Emerald," a massive $50 billion, 1.2-gigawatt data center proposed by Australia-based company IREN. The development is planned for a 2,000-acre site along U.S. Highway 69 just south of Kiowa, Oklahoma. This decision comes despite growing scrutiny of data center developments across the state, including temporary moratoriums passed in Oklahoma City and Tulsa. Local citizens raised concerns about the project's impact during public meetings, prompting the committee, composed of local school and business leaders, to address issues like property tax abatements. The approved economic development plan outlines an 85 percent property tax abatement for the facility once its electrical capacity exceeds 550 megawatts, with IREN committing to "community betterment payments" and PILOT payments if tax revenues fall short of benchmarks. This includes significant projected annual tax revenues for local entities such as Kiowa Public Schools ($11 million), Pittsburg County ($2.8 million), and Kiamichi Technology Center ($3.4 million). A major point of contention has been the project's energy and water demands. Public Service Company of Oklahoma (PSO), the local utility, initially indicated data center demand could strain the grid and increase costs for all customers. However, PSO's external affairs manager, Johnathan Wynn, later stated that the company is obligated to provide service and that costs associated with increasing grid capacity for the IREN project would not be passed on to ratepayers. This promise is now reinforced by state law: Gov. Kevin Stitt signed HB 2992, the Data Center Ratepayer Protection Act, requiring large-load users like data centers to cover their electricity and infrastructure costs. The bill also includes new transparency requirements for large-load projects, mandating notice to the Corporation Commission, county officials, and abutting property owners within 60 days of property purchase. AARP Oklahoma highlighted public support for data centers bearing their own costs, with 92% of older Oklahomans surveyed believing existing residential customers should not pay for new large data centers. Regarding water, IREN officials state the City of Kiowa has adequate supply and that low-consumptive cooling technologies will be used. However, the McAlester City Council declined a raw water sales contract to Black Mountain Energy Storage for the project due to insufficient information. Furthermore, the State Senate is poised to vote on an amended SB 259, which would require the Oklahoma Water Resources Board to only approve groundwater permits for data centers if they use closed-loop, dielectric immersion, or comparably low-consumptive cooling technologies that minimize water loss. Construction for Project Emerald is slated to begin in 2027, with operations commencing a year later, creating an estimated 40 permanent jobs per phase after construction.