Lawmakers Mark Signing of Landmark Data Center Protections
OKLAHOMA CITY — House and Senate lawmakers joined Gov. Kevin Stitt on Thursday for the ceremonial signing of two laws protecting Oklahoma utility customers and groundwater resources as large-scale data centers expand across the state. Stitt ceremonially signed House Bill 2992 , the Data Center Customer Ratepayer Protection Act of 2026, authored by Rep. Brad Boles, R-Marlow, and Sen. Grant Green, R-Wellston, and Senate Bill 259 , known as the Groundwater Modernization Act, authored by Sen. Brent Howard, R-Altus, and Rep. Carl Newton, R-Cherokee. The measures create safeguards to protect Oklahoma families, small businesses and traditional utility customers from bearing utility and infrastructure costs created by large-scale energy users. They also enhance groundwater protections and water-use reporting requirements. "With these two bills now law, Oklahoma families and businesses will not be forced to subsidize the infrastructure needs of massive data centers and other large-scale energy users," Boles said. "I appreciate all of my colleagues in the House and the Senate who recognized the importance of protecting Oklahoma ratepayers and Governor Stitt for signing these measures into law. I am pleased we were able to deliver these ratepayer protections for Oklahomans." HB2992 took effect July 1 and protects existing utility customers from infrastructure costs created by large-scale energy users, including data centers, cryptocurrency mining operations and artificial intelligence facilities. It also requires developers to notify adjoining landowners, county commissioners and the Oklahoma Corporation Commission within 60 days of acquiring land for a qualifying project. "As our state continues to attract major energy-intensive industries, we’ve established a framework that ensures those developments pay their own way rather than shifting costs onto Oklahoma families, farmers, ranchers and small businesses," Green said. "Today’s ceremony highlighted our shared commitment to protecting Oklahoma land and ratepayers while supporting responsible and transparent economic growth." SB259 takes effect Nov. 1 and modernizes Oklahoma’s groundwater permitting, monitoring and reporting requirements. The law requires water permit holders to submit annual water-use reports to the Oklahoma Water Resources Board and directs the board to establish rules for reviewing reports, investigating complaints of waste and imposing penalties for overuse. "The Groundwater Modernization Act ensures Oklahoma’s most important natural resource is protected as our state attracts new commercial investments," Howard said. "The legislation recognized in today’s ceremony establishes a stronger standard for responsible and transparent groundwater management and conservation across Oklahoma. This law will help safeguard this vital resource for the needs of our communities today and for generations to come." The law prohibits data centers from using groundwater in open-air evaporative cooling systems or other systems that consume groundwater through evaporation without recirculation. To receive a groundwater permit, a data center must demonstrate that it will use low-consumptive cooling technology, such as a closed-loop or dielectric immersion system, which will help preserve groundwater for local communities and farmers. "For those communities that choose to allow data centers, this bill will ensure that water is conserved, and evaporation is limited," Newton said. "It's important to me and those I serve in northwestern Oklahoma, as well as residents throughout the state, that we protect our precious water resources and use the best conservation practices." Stitt says these new laws offer an approach to meeting Americans’ data needs while making sure Oklahomans are not left holding the bill. "This legislation ensures Oklahoma families come first as our economy grows," Stitt said. "In Oklahoma, we welcome the free market to drive prosperity, and we have also set clear guardrails for large load customers to solve for their own power needs. I appreciate legislative leaders for passing a modern solution that keeps Oklahoma a national energy leader while protecting four million Oklahomans from paying for someone else’s power use." The event was held at 9:30 a.m. in the Governor’s Blue Room. Stitt previously approved HB2992 May 11 and SB259 May 20.