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Some data centers are building their own power plants. In Oklahoma, most want to plug into the grid

Transmission lines in central Oklahoma.
Chloe Bennett-Steele
Transmission lines in central Oklahoma.

Last month, Gov. Kevin Stitt and some Oklahoma electric utilities signed a federal pledge to protect household ratepayers. The Ratepayer Protection Pledge directs data center developers to pay their own way and invest in surrounding communities.

Part of the document states companies must buy the massive amount of electricity they require, add more power to the grid or supply it on-site.

"You're going to be building your own data centers, and you're going to be building your own electric plants," said President Donald Trump. "You're essentially becoming a utility."

The pledge is one of many ways officials are responding to public pushback against hyperscale data centers.

Oklahoma has its own version of a ratepayer protection pledge, a law requiring electricity suppliers to create separate terms and conditions for large-scale energy consumers like data centers and increase transparency. State regulators are currently reviewing large-load tariffs from utilities intended to prevent households from shouldering grid connection costs for companies like Google and Meta.

The legislature also passed Senate Bill 480 last year, allowing data centers to build power plants behind the meter, bypassing utilities. Rep. Brad Boles, R-Marlow, co-authored the legislation.

"What we realized is in Oklahoma, our state law is kind of vague; it doesn't really say that companies can provide their own power generation," Boles, who is running for a seat on the Corporation Commission, said. "It doesn't say they can't either, but it doesn't say that they can."

" So we wanted to provide clarity that if a large load comes to Oklahoma and they want to provide their own power generation, that they would have the ability to do that," he said.

The bill was expected to generate billions of dollars in private investment and alleviate pressure from the electric grid. Growing demand, supercharged by large-load consumers like data centers, is expected to outpace supply within the Southwest Power Pool's territory. The organization operates the electric grid in Oklahoma and 16 other states.

But so far, most data centers with plans in Oklahoma are opting to plug into the grid. Experts say the state's grid system is likely more reliable than depending on behind-the-meter generation. Building a power plant is costly and can take years to complete.

" I don't readily, actually, believe that any data center company wants to also be in the power business," said Joshua Rhodes, a research scientist at the University of Texas at Austin.

Still, some AI companies are investing in behind-the-meter natural gas plants in states like neighboring Texas to accelerate the pace of buildout. Those plants are expected to emit significant amounts of pollution, an analysis from the Texas Tribune and Floodlight shows.

Why Oklahoma isn't seeing an influx of behind-the-meter projects for data centers 

Data centers typically have backup generators on site, should they temporarily lose connection. Some companies are adding power to the grid with new energy projects.

Google and Oklahoma Gas & Electric announced a deal in the spring to power the tech company's three data centers in Muskogee and Stillwater. Google is building two solar farms to add energy generation.

Christi Woodworth,  OG&E's chief communications officer, said companies are eyeing the state's relatively low electricity costs and reliability.

"They've got to make a decision about if they want to build or bring their own generation," she said. "That effectively puts them on an island, right? They take on all of that risk themselves, and they have to decide if that's something that they want to do."

"The folks we're talking with are very interested in connecting to the grid."

The company is in "a handful" of other discussions with large-load projects, Woodworth said, but no plans are public yet.

Last year, officials announced a project in Chickasha and celebrated the state's new behind-the-meter law. The Chickasha Airport Industrial Park could one day be home to a data center and power plant, but no firm plans have been made public. A manufacturing firm in the Tulsa Port of Catoosa announced early this year it plans to build its power on-site. A news release says the company specializes in aerospace, energy and advanced manufacturing.

Large proposed data centers, including the Luther Horizon Technology Park, Project Mustang in Claremore, IREN's Kiowa Data Center and more, plan to work with local utilities.

The Kiowa facility is the state's largest proposed data center, according to energy analytics firm Cleanview. In an email, Jason Date, associate director of development, said the company plans to secure its power through Public Service Company of Oklahoma.

"Like the vast majority of homes and businesses, IREN's facilities use grid power because it is the most efficient and reliable way to source electricity," he said.

A delay in critical infrastructure delivery is also an obstacle for data center developers. Getting a natural gas plant, the typical energy source for behind-the-meter data center projects, can currently take years.

"If you're not in line right now, you're probably not getting one until the 2030s," Rhodes said.

Some companies instead are turning to used products to avoid the mile-long backlog.

" I've heard of companies looking to buy used cruise ship engines," Rhodes said. "I heard one the other day of someone trying to string together a bunch of used helicopter engines."

Oklahoma's behind-the-meter law requires developers to have natural gas as part of their plant. Other sources, including solar and wind, could be used in conjunction. When asked about the natural gas requirement, Boles said it was included to support the oil and gas industry.

"We felt like, as Oklahomans, it's important to ensure that natural gas has a seat at the table," he said.

According to an analysis from Cleanview, Oklahoma has fewer than 30 data centers planned for the state as of early August. Texas has hundreds in its queue, Rhodes said, meaning more developers are racing to supply power. Should tech companies continue showing interest in Oklahoma, it's possible more behind-the-meter projects could be announced.

Boles said he expects more interest in the future.

"Like anything, it takes time," Boles said. "If you're to build a facility with behind-the-meter, it may take three to five years to get the power infrastructure built."

"I think we're not going to really know for sure how many companies are utilizing this until a few years down the road."


StateImpact Oklahoma is a partnership of Oklahoma's public radio stations which relies on contributions from readers and listeners to fulfill its mission of public service to Oklahoma and beyond. Donate online.

Chloe Bennett-Steele
Chloe Bennett-Steele
StateImpact Oklahoma
StateImpact Oklahoma