Tribes wary of data centers

Oklahoma tribal leaders recently met in Thursday for a “State of the Tribal Nations” conference and two major topics of discussion were data centers and energy.

Principal chiefs from the Muscogee, Cherokee and Osage nations were on hand and all three leaders confirmed they were cautious in their approach to dealing with AI and data centers. Muscogee Principal Chief David Hill is one of them.

“Every treaty that we signed, we gave up something, and it was our land and other rights….and that’s the point where I don’t want to get to,” he said, adding it is reminiscent of when the tribe signed its first treaties with the federal government, reported KOSU. Hill fears data centers could harm the environment.

Last November, the Muscogee National Council rejected a proposal to build a data center on its reservation. The action came after the Office of Indian Energy Policy and Programs encouraged U.S. Indian tribes to enter into business development deals with data center developers.

“Partnering with a data center developer holds tremendous opportunity right now—from land leases to selling power to the data center through a power purchase agreement to infrastructure developments and job expansion. And although there are several benefits, factors such as water use; local and community impacts; and transmission infrastructure, interconnection, and fiber access requirements should be considered,” said the Office. “We at the Office of Indian Energy recognize many Tribes know how to design, permit, construct, and operate large infrastructure, often requiring reliable 24/7 power with robust cybersecurity controls. Those same skills are relevant, for example, to developing megawatt- or even gigawatt-scale data centers. We’ve worked with many of you before, and we are available to work with you again.”

Cherokee Principal Chief Chuck Hoskin Jr. is among the skeptics and his tribe wants more information about the costs and whether data centers would be beneficial to the tribe. It created a task force in February to study the issue and help tribal leaders make the best decision possible.

Geoffrey Standing Bear, the Osage Principal Chief, also wants more evidence and proof that data centers would help his tribe. He is awaiting on information from the developers of a planned data center in Sand Springs.

“People can still go into the Osage, walk out as millionaires and leave us with nothing. If I’m going to do any more work in this Indian business, it’s on that issue. I’m tired of getting ripped off.”

Energy funding was another major topic at the gathering of tribal leaders. In the case of the Osage Nation, it received federal funding to expand oil and gas production. The Osage Nation controls all minerals in Osage County, the only county in the state where the Oklahoma Corporation Commission lacks control and regulatory power. Such duties lie with the tribe’s Minerals Council.

Chief Standing Bear is optimistic about the growth of oil and gas production in his nation.

“As we lift off these federal regulations and unleash the path to oil and gas production once again…, that money in Department of Energy and other agencies can come into the Interior Department and we can rebuild the oil and gas energy business in the Osage.”