Oklahoma Laws Require Data Centers to Fund Own Power

Governor Kevin Stitt and Oklahoma electric utilities signed a federal Ratepayer Protection Pledge to ensure data center developers cover their own electricity costs and invest in local communities. To shield households from grid connection expenses, Oklahoma enacted a law requiring separate terms for large-scale energy consumers.

The state also passed Senate Bill 480, which allows data centers to construct behind-the-meter power plants. This legislation specifically requires the use of natural gas to support Oklahoma's oil and gas industry. President Donald Trump noted that through such on-site generation, these companies are essentially becoming utilities.

Despite these legal options, most developers—including Google LLC and IREN—prefer connecting to the existing electric grid due to reliability and the high cost and long lead times of independent plants. While some companies seek used industrial engines to bypass infrastructure delays, Oklahoma currently has fewer than 30 planned data centers, a fraction of the hundreds queued in Texas.