Ratepayers to feel impact of data center power needs

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Oklahoma Faces Growing Strain as Data Centers Drive New Power Demands

At Least 18 Data Center Projects Identified Across Oklahoma

We’ve been reporting for more than a year about the rapid growth of data centers in Oklahoma and the pressure this boom places on utilities, ratepayers, and the state’s broader power infrastructure. Consumers continue to question and challenge new data center developments as they fear increased electricity rates if utilities seek regulatory approval for additional generation facilities required to meet soaring demand.

Now The Frontier has taken a deeper look into the issue, reporting it found at least 18 data center projects across the state that are either under construction or awaiting government approvals. The outlet examined the same central question OK Energy Today has explored: How will Oklahoma generate enough electricity to power these massive facilities, and what will that mean for everyday consumers?

Utilities Brace for Large-Scale Demand Increases

According to The Frontier’s investigation, Oklahoma Gas and Electric (OG&E) and Public Service Company of Oklahoma (PSO)—the state’s two largest electric utilities—are already taking significant steps to increase their power-generating capacity. These efforts come as major data center operators, including some of the largest tech companies in the world, scout Oklahoma for new locations due to access to land, tax incentives, and relatively low energy costs.

To prepare for the projected electricity load, utilities are planning or proposing:

  • New natural gas generation units

  • Upgrades to existing power plants

  • Major transmission expansions

  • Long-term power purchase agreements

The Frontier detailed how these steps are part of a larger statewide challenge: balancing economic development benefits against the financial burden that may fall on ratepayers.

Corporation Commission Supports OG&E Expansion

Just this week, the Oklahoma Corporation Commission voted 2–1 to reaffirm its earlier approval granting OG&E pre-approval for new power agreements and multiple expansion projects. These include planned upgrades or additions in eastern Oklahoma County, Pittsburg County, and the Kiamichi region.

These projects are intended to help OG&E meet the enormous electricity needs associated with upcoming data center load, which in some cases rivals the power consumption of entire cities.

Concerns Grow Over Who Will Pay

As The Frontier reported:

The utilities are already looking to pass the cost of new transmission lines and power generation on to all customers, including residential users.

This revelation has intensified concerns among consumer advocates and local residents who worry that Oklahomans may face higher monthly utility bills as the state attempts to support the booming but resource-heavy data center industry.

The debate is now statewide: How much should Oklahoma invest in powering data centers—and who should shoulder the cost?

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