Clinton studies impact of data center expansion on Oklahoma’s water resources and power grid
OKLAHOMA CITY – Rep. Amanda Clinton, D-Tulsa, conducted an Interim Study on the impact of data center expansion on Oklahoma’s water resources and power grid in front of the Utilities Committee. Data centers range from small to regional facilities that support hospitals, universities, or private businesses to large-scale developments called “hyperscalers,” that support social media, streaming services and generative AI. Clinton’s study focused primarily on hyperscalers as they are experiencing the most significant growth. “Data centers are an increasingly significant part of Oklahoma’s economy and infrastructure,” said Clinton. “But as this industry experiences unprecedented growth, it is also poorly understood by many. In short, data centers power our everyday lives, fuel our modern conveniences and make daily tasks more manageable. As our demand for this technology increases, so does the need for data centers. However, these hyperscalers may also use incredible amounts of electricity and water for cooling their servers, while their true economic impact is largely unstudied.” Clinton was first inspired to conduct this study after seeing headlines in her district about potential data centers in Tulsa and their use of millions of gallons of water per day. Today’s study confirmed that data centers require massive amounts of water, but alternative technologies can mitigate overuse. “My goal today was to start a real conversation about how we accommodate this growing industry without compromising water quality and quantity,” Clinton said. “I consider it my duty as a legislator to ensure Oklahomans have clean, plentiful water for everyday use and recreation. Because at the end of the day, you can’t drink data.” In addition to the massive amounts of water hyperscale data centers may consume, they also require enormous amounts of electricity. In an Oklahoma Corporation Commission (OCC) filing last month, Public Service Company of Oklahoma (PSO) reported an unprecedented need for more electricity, due to “data centers, manufacturers and other industrial businesses.” In their filing, PSO reported it has signed an agreement with a new customer that will eventually result in a load of over 1,000 MW, when the largest single customer in PSO’s history required only 130 MW. The company said it has Letters of Agreement or contracts with eleven other customers that require 50 MW or more. The company is currently seeking OCC approval for the recovery of costs for new power generation. The company stated in its filing that recovering these costs could result in an increase of about $10 per month to the average residential customer. Clinton said one of her biggest takeaways was that the tech sector appears to be working directly with municipalities rather than the state of Oklahoma to develop these projects. That leaves many decisions in the hands of local leaders, meaning municipalities and counties bear the greatest responsibility for vetting these projects on behalf of their citizens. “Finding reliable data on how many permanent, local jobs hyperscalers create was difficult, and I was surprised to hear the Oklahoma Department of Commerce estimate that hyperscale data centers may create fewer than 10 jobs per structure on their campus,” Clinton said. “At the same time, the capital investment is undeniable. Several companies in Tulsa are growing their businesses by building data centers or supplying the equipment that fuels this technology, and that is good news for our region. It just shows how complex this industry is, and how important it is for local leaders to fully vet these projects with transparency, and prioritize economic development that puts Oklahomans and our quality of life first.” Clinton said her goal for the study was not to make a blanket determination of the data center industry as “good” or “bad.” Rather, she hoped to gather answers to basic questions and concerns so communities can better manage this burgeoning industry responsibly, while putting Oklahomans first. “I’m grateful to everyone who lent their time and expertise to this study, and I hope it’s only the beginning of a longer, meaningful conversation about this topic,” she said. Presentations provided a snapshot of economic aspects, energy, water, environmental, and community impacts of hyperscale data centers, along with ways to manage the industry to best serve all Oklahomans. Speakers included: Commonwealth of Virginia’s Joint Legislative Audit & Review Commission (JLARC) Oklahoma Department of Commerce Payne County City of Stillwater Oklahoma Water Resources Board Oklahoma Department of Environmental Quality Public Service Company of Oklahoma (PSO) The entire study can be viewed on the Oklahoma House of Representatives Website. -END-