A loophole leaves Oklahoma data center water consumption largely untracked
Oklahoma's data centers largely avoid water permits by purchasing water from municipal utilities, leaving their consumption untracked despite a new state law. This loophole is fueling community opposition in areas like Yukon and Luther, where Beltline Energy's proposed data centers face scrutiny over water use and transparency. Lawmakers are working to close this regulatory gap as the AI industry's rapid expansion strains local resources.
A significant loophole in Oklahoma's water regulations allows data centers to avoid obtaining water permits by purchasing water directly from municipal utilities, leading to largely untracked consumption. This issue is highlighted by concerns from rural Oklahomans, including Pencia Truhan near the proposed $15 billion Beltline Energy data center campus spanning Oklahoma City and Yukon.
Despite Governor Kevin Stitt signing Senate Bill 259, which restricts groundwater permits for data centers to those using water-conserving cooling systems, the loophole persists for facilities buying from utilities. This lack of oversight and transparency, coupled with high water and electricity demands from hyperscale AI data centers, has sparked strong community opposition in towns like Yukon and Luther, leading to public backlash, petitions, and even a moratorium on new data centers in Luther.
Beltline Energy, an Atlanta-based developer, faces scrutiny for its lack of transparency regarding its plans, including barring media from meetings and asking government officials to sign non-disclosure agreements. The proposed Yukon/Oklahoma City project, with a planned 1,000-megawatt capacity, remains pending rezoning approval for the Oklahoma City portion and a finalized agreement with the City of Yukon, which is considering selling treated wastewater to the project.
State Representative Carl Newton, who authored SB 259, is now working on new legislation to close the permitting loophole. However, the rapid growth of the AI infrastructure industry is outpacing regulatory efforts, with the Oklahoma Water Resources Board acknowledging a lack of expertise and capacity to fully regulate the industry's water use.