Oklahoma is confronting the environmental and infrastructure pressures of an accelerating data centre boom, following a legislative study led by Representative Amanda Clinton, a Democrat from Tulsa. The inquiry, presented before the state’s Utilities Committee, examined how rapid data centre expansion — particularly from large-scale “hyperscalers” — is reshaping Oklahoma’s water resources and electricity grid.
Focus on hyperscale growth
Data centres, which range from small institutional facilities to vast hyperscale complexes supporting global technology firms, have become integral to the state’s digital economy. Clinton’s study focused on hyperscalers, which support cloud computing, social media platforms, and artificial intelligence, and which she said are growing at an unprecedented rate.
“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.”
Concerns over water use
The lawmaker initiated the study after reports of potential hyperscale projects in her district raised concerns over water use measured in millions of gallons per day. The session confirmed that such facilities require substantial water for cooling, although alternative technologies could reduce consumption.
“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.”
Rising energy demand
Electricity demand from hyperscale data centres is also proving challenging. In a filing with the Oklahoma Corporation Commission (OCC), Public Service Company of Oklahoma (PSO) warned of an “unprecedented need for more electricity” driven by data centres, manufacturers and other heavy industries.
According to PSO, one new customer agreement alone could add more than 1,000 megawatts of load — nearly eight times larger than the company’s previous record for a single customer. PSO has also signed or agreed in principle with 11 additional clients each requiring 50 megawatts or more. The utility is seeking OCC approval to recover the cost of expanding generation capacity, which could raise the average residential bill by around $10 per month.
Local decision-making and job impact
Clinton said one of the study’s key revelations was that most hyperscale developers are negotiating directly with municipalities rather than the state, giving local governments primary responsibility for assessing such 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,” she 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.”
A balanced approach
Rather than taking a position for or against the data centre industry, Clinton said her objective was to provide lawmakers and communities with better information.
“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 added.
Industry perspectives
The interim study featured presentations from a range of contributors including the Commonwealth of Virginia’s Joint Legislative Audit & Review Commission (JLARC), the Oklahoma Department of Commerce, the Oklahoma Water Resources Board, the Department of Environmental Quality, Payne County, the City of Stillwater, and the Public Service Company of Oklahoma.
The full study and supporting materials are available through the Oklahoma House of Representatives website.
