Oklahoma Studies Data Centers’ Water and Power Strain

Data Center Growth Has Economic Ripple Effects | CBRE

Clinton Studies Data Center Growth and Oklahoma’s Power and Water

OKLAHOMA CITYRep. Amanda Clinton, D-Tulsa, led a Utilities Committee study on how data center expansion impacts Oklahoma’s water resources and power grid. The discussion focused on the rise of “hyperscalers,” the massive facilities that power streaming, social media, and AI technologies.

Water Use Raises Concerns

“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 said she began the study after reading headlines about potential data centers in Tulsa that could use millions of gallons of water each day. Tuesday’s hearing confirmed the facilities need large volumes of water, though new technologies can help reduce waste.

“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.”

Power Demand Surges Across Oklahoma

Data centers also consume enormous amounts of electricity. In a filing last month with the Oklahoma Corporation Commission, Public Service Company of Oklahoma (PSO) reported record demand from “data centers, manufacturers and other industrial businesses.”

PSO stated it signed an agreement with a new customer expected to require more than 1,000 megawatts of power — far above its previous largest customer at 130 megawatts. The company said it has eleven other customers needing at least 50 megawatts each and requested OCC approval to recover generation costs, which could raise the average home bill by about $10 per month.

Local Leaders Bear the Responsibility

Clinton said the tech sector often works directly with municipalities rather than the state, leaving local officials to vet the projects.

“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.”

Balancing Growth and Responsibility

Clinton said her study aimed to gather facts, not cast judgment. “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.

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, and Public Service Company of Oklahoma (PSO).

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The entire study can be viewed on the Oklahoma House of Representatives Website.

Source: House press release–Rewritten for clarity by Oklahoma Energy Today