By Devyn Lyon, Fox23 News
OKLAHOMA — Residents living near proposed data centers across Oklahoma are raising concerns about how the massive facilities could impact utility rates, water resources and local infrastructure.
Payton Pepin, an Oklahoma resident who lives near a proposed data center, worries higher power demand could eventually show up on her household bills.
“What I look at is when is the rate hike coming for us for this?” Pepin asked.
In Coweta, Darren Blanchard said stormwater runoff is another issue neighbors fear hasn’t been fully addressed.
“We don’t have the infrastructure to handle or divert stormwater runoff, so there’s going to be some consequences that are afforded by nonparticipating landowners.”
A statewide map shows both existing and proposed data centers across Oklahoma, with several planned for Green Country.
Opponents to these data centers said the rapid expansion raises long term concerns about electricity use and water consumption.
Kelly Boegemann, who started a petition opposing a proposed data center in her area, said similar projects in other states have driven up utility rates.
“The amount of resources that it takes up, and we see all across other data centers they’re raising utility rates.”
Data center companies argue the facilities will have little to no impact on local residents. In response to residents’ concerns, they often point to upfront payments, increased tax revenue and utility investments as benefits to communities.
However, critics note these agreements still reply on local infrastructure and utility usage, which are costs that may ultimately affect ratepayers.
State Representative Brad Boles (R-Marlow) said the surge in data center development is prompting new conversations at the State Capitol.
“There’s a lot of opportunities for data centers here in Oklahoma. We’re hearing [about] a lot of potential new ones being built and installed, but all that takes more power.”
Boles recently filed the Oklahoma Ratepayer Protection Act ahead of the upcoming legislative session.
He said the bill is still being finalized, but its goal is to shield consumers from higher costs tied to large-scale data center growth.
“I don’t have all the language finalized yet, but that’s the intent of the bill, to protect ratepayers from having increased costs due to the increase in data centers.”
According to a Pew Research study, a typical AI-focused data center can consume as much electricity as 100,000 households.
Oklahomans have become more concerned after the Public Service Company of Oklahoma (PSO) announced it will be seeking a rate increase that would raise the average customer’s monthly bill by about 15%—roughly $25 per month—by July if the increase is approved by the Oklahoma Corporation Commission.
PSO said the proposed increase is unrelated to data centers and insisted it would ultimately benefit ratepayers.
Some lawmakers remain skeptical.
State Representative Amanda Clinton (D-Tulsa) said she’s already conducted an interim study focused on understanding how data centers could impact electricity demand and water resources.
“As I started looking into what it takes to operate a data center, the electricity really started to jump out at me. I wanted to gauge the impact on our water quality, water quantity and the amount of electricity that’s going to be taken and how that might burden consumers.”
Lawmakers also point to legislation passed in 2023 that allows utility companies to request rate hikes and even begin collecting revenue before construction on major projects begin.
Critics argue that would mean ratepayers could end up paying for infrastructure that hasn’t even been built yet.
When asked how lawmakers can ensure data centers pay their fair share, Boles said those discussions are ongoing.
“There’s a lot of different ways of going about doing that. I want to work with the Corporation Commissioners, my colleagues in the legislature and the governor’s office to make sure we have the best language possible to get that accomplished.”
To view the Pew Research Study over how much electricity an average AI-focused data center uses, click here.
To view the Oklahoma Ratepayer Protection Act filed by Representative Brad Boles, click here.
To view the utilities legislation passed in 2023, click here.
