Temporary bans on data centers proposed in 12 states; Lawton imposed limits

Oklahoma is among a dozen states considering temporary moratoriums on new data center construction, signaling a shift from previous policies focused on attracting such facilities with incentives. Good Jobs First reported that at least 12 states have introduced moratorium bills this cycle, alongside numerous city and county measures, indicating a growing awareness of the need for regulatory guardrails. In Oklahoma, Senate Bill 1488 proposes a moratorium until November 2029, tasking the Oklahoma Corporation Commission with studying the impacts on water, utility rates, and property values. This follows a trend of states re-evaluating their "open-door" policies towards data centers. House Bill 2992, the "Data Center Customer Protection Act," aims to ensure that residential and commercial customers are not subsidizing the high electricity costs of data centers and bitcoin mining operations, requiring separate, long-term contracts for these large consumers. Concerns about rising electricity costs, strain on the power grid, and substantial water consumption are driving these legislative efforts. For instance, while Google plans significant investment in Oklahoma data centers, some communities like Lawton are implementing specific limitations. The Lawton City Council recently voted to allow data centers under 2 megawatts as a permitted use and those over 2 megawatts as a "use permitted on review," reflecting a cautious approach. Public utilities in Lawton are evaluating water demand and requiring assurances from power providers like PSO regarding electricity capacity for new data centers.