By Paige Orr, FOX23.com News Staff
OKLAHOMA CITY — The Oklahoma Legislature is taking aim at data centers with two different approaches, as lawmakers respond to constituent concerns about rising energy costs and infrastructure strain.
House Bill 3917 by Rep. Mickey Dollens, D-Oklahoma City, passed the Appropriations and Budget Natural Resources Subcommittee 9-0 on Monday morning. The measure requires large data centers to pay a surcharge during peak demand periods, with the revenue funding grid modernization through the Oklahoma Corporation Commission.
“This bill protects everyday rate payers by putting a surcharge on data centers so that cost isn’t put onto rate payers,” Dollens said. “One of the top issues that we’ve been hearing this session is concern around data centers, not only the amount of electricity they use, but the water as well.”
The bill defines large data centers as facilities using more than 50 megawatts of power, targeting major tech companies like Google and Meta that have sought to build in Oklahoma due to relatively cheap electricity and hydropower access.
“This isn’t going to affect any small local businesses, but you’re looking at the Googles, the Metas, the big tech companies,” Dollens said.
A separate measure, House Bill 3724 by Rep. Jim Shaw, R-Chandler, takes a more comprehensive approach. Shaw’s bill, which gets its first hearing in the Utilities Committee on Tuesday, would prohibit taxpayer-funded subsidies for data centers, require the facilities to pay 100% of their own infrastructure upgrades, impose strict water-use limitations and give counties and municipalities authority to block such projects entirely.
“We want to protect people and we want to protect our natural resources,” Shaw said. “These sizes of facilities moving into our communities or into our rural areas have significant impacts, not only on the property that they’re installed, but also on the surrounding neighbors and communities.”
Shaw cited the proposed data center in Stillwater as an example, noting its projected water usage of 2.7 million gallons per day would account for about 34% of what the entire city currently consumes.
“If these companies move in and they need significant infrastructure upgrades because the amount of energy they consume is astronomical, they need to pay 100% of those infrastructure costs,” Shaw said. “Individuals and small business owners in Oklahoma should not be burdened with that whatsoever.”
Kyle Schmidt, president of Protect Sand Springs Alliance, a group fighting a proposed data center in their community, said Dollens’ bill is progress, but more work is needed.
“I think 3917 is one step, and it’s a good, small step in the right direction,” Schmidt said.
However, Schmidt expressed concern that Shaw’s broader bill may struggle to gain passage.
“I think 3724 goes too far and tries to do too much at once and makes it harder to pass,” Schmidt said. “I would much rather see legislators engage, spend their time engaging with the community and working on productive legislation that can actually pass and will actually benefit communities.”
Still, Schmidt had a clear message for state lawmakers considering data center regulations.
“Listen to your constituents and remember who you represent,” he said. “You represent them, not the data companies.”
Dollens said lawmakers are responding to constituent concerns, particularly from residents on fixed incomes who cannot afford potential rate increases.
“Many lawmakers across the aisle are addressing data centers this year because we’re hearing from our constituents, especially those on fixed income, simply can’t afford the incredible amounts of energy that these data centers use,” Dollens said.
His bill now heads to the full Appropriations and Budget Committee and could reach the House floor for a vote within two to three weeks.
You can read the full text of HB 3917 by clicking here and HB 3724 by clicking here.
