Google locks in power for Oklahoma data centers: OG&E signs supply deal
Google and Oklahoma Gas & Electric (OG&E) have finalized an agreement for OG&E to power three new Google data centers in Oklahoma, with Google covering upfront infrastructure costs. The deal faces a formal review by the Oklahoma Corporation Commission, which will also consider a new tariff for large load customers. Local leaders and environmental groups have raised concerns about water usage, job creation, and potential impacts on electricity rates, emphasizing the need for robust environmental and water-management plans.
Oklahoma Gas & Electric (OG&E) and Google announced an agreement on April 30, 2026, for the utility to supply power to three new Google data centers in Oklahoma. This deal mandates Google to fully fund the costs of connecting these facilities to the power grid and to honor contracted payments regardless of actual energy consumption. OG&E officials highlighted the agreement as a significant precedent for integrating large digital customers and asserted that it would not shift connection expenses to other ratepayers, potentially spreading fixed system costs across a broader base.
The agreement will undergo a routine, several-month-long review by the Oklahoma Corporation Commission (OCC), which will include public comment periods to assess potential harm to other ratepayers. Additionally, OG&E plans to file a formal tariff for "large load" customers by July 1, providing more details on cost accounting, and the OCC is expected to review capacity purchase agreements for solar projects tied to the new load. State regulators are also preparing a broader review that could redefine how communities evaluate future data center developments.
Google projects substantial local economic activity, estimating an average of $688 million per facility, and claims each on-campus job supports multiple additional positions in the surrounding community. The company points to its existing Pryor campus, which employs over 1,000 people, as an example of significant on-site staffing requirements for larger operations. However, the new facilities are in early planning stages, and concerns remain that many jobs will be temporary construction roles, with permanent staffing being modest.
Water consumption is a significant concern for communities hosting data centers. While Google states that most water used in cooling evaporates and discharged water is treated, local water-supply managers and environmental groups are pressing for detailed, site-specific plans for water sources, treatment, and contingency measures, particularly in drought-prone seasons. The agreement underscores the balancing act between attracting private capital for infrastructure and economic activity, and ensuring local interests—such as affordable rates, reliable service, and sustainable water use—are protected, as stakeholders prepare to raise questions during the upcoming regulatory reviews and filings.