Most data center developers in Oklahoma are opting to connect to the existing electric grid rather than build their own power plants, even after state lawmakers cleared the way for on-site generation. Gov. Kevin Stitt and several Oklahoma utilities signed the federal Ratepayer Protection Pledge in July, an agreement directing data center developers to fund their own electricity needs by purchasing power, adding generation capacity, or supplying it on-site rather than shifting costs to households.
Oklahoma passed a law this year requiring electricity suppliers to set separate terms for large-load customers such as data centers, and state regulators are reviewing tariff proposals from utilities including OG&E intended to shield residential customers from data center-related grid connection costs. A separate measure, Senate Bill 480, passed last year and allows data centers to build power plants behind the meter, bypassing utility infrastructure, provided natural gas is part of the generation mix.
Despite that option, most announced Oklahoma projects, including the Luther Horizon Technology Park, Project Mustang in Claremore and IREN's Kiowa Data Center, plan to draw power from the grid. Google and OG&E reached an agreement this spring to supply three planned data centers in Muskogee and Stillwater, with Google building two solar farms to add generation capacity. Utility officials say most companies they are in discussions with prefer grid connections over taking on the financial risk of building their own plants. Industry analysts note that new natural gas turbines can take years to secure, pushing some developers toward alternatives such as used marine or aircraft engines. Oklahoma had fewer than 30 data centers in its planning pipeline as of early August, compared with hundreds in neighboring Texas.
Source: KGOU / StateImpact Oklahoma -- https://www.kgou.org/energy/2026-08-06/some-data-centers-are-building-their-own-power-plants-in-oklahoma-most-want-to-plug-into-the-grid