Broken Arrow Pauses Data Center Plans for Further Review

Broken Arrow City Manager Michael Spurgeon stated on Tuesday that the administration has not reached any conclusions regarding data center development. He emphasized that the city is currently performing due diligence and is nowhere near making a recommendation. This statement aims to counter social media speculation suggesting that a large-scale development is a foregone conclusion. The city has explicitly rejected the idea that any imminent projects are on the horizon.

The city council approved a moratorium in June that expires at the end of the year. This pause was implemented to allow officials time to investigate the potential impacts of large-scale data centers on local resources. The goal is to create appropriate zoning regulations that can later be reviewed by the council. Spurgeon noted that the administration has not prepared any recommendations, reiterating that the process is strictly investigative at this stage.

Specific site proposal falls through

In June, the city learned of plans for a proposed data center on 51 acres in the 8500 block of S. 209th East Ave. However, the letter of intent to sell the property expired and was not renewed by the developers. Consequently, the anticipated pre-development meeting between the developers and city officials never took place. The site selection company did not request a meeting, signaling a lack of immediate progress on this specific location.

Although the specific proposal has stalled, the initial approach in April prompted a broader review by city leaders and the Broken Arrow Economic Development Corp. They began researching concerns citizens have raised about the potential impacts of data centers on the community. This shift from specific project review to general policy analysis reflects a cautious approach to managing rapid technological infrastructure growth in the region.

Local utility capacity faces scrutiny

To understand the electrical implications, the city spoke with Public Service Co. of Oklahoma. The utility reported that current generation capacity is 7.1 gigawatts, compared to a peak summer demand of 4.5 gigawatts. Officials expressed confidence that data center growth could be accommodated without adversely impacting other customers. However, state law now requires facilities needing 10 to 75 megawatts of power to construct a dedicated substation and fund 100% of the grid connection costs.

PSO maintains a 60% reserve margin and prioritizes central services during outages, which provides a buffer for reliability. Additionally, the utility requires data centers to provide two years of estimated power costs to assist with long-term planning. While these measures mitigate some risks, they highlight the significant financial and infrastructure commitments required before any facility can operate, placing the burden of grid expansion squarely on the developers.

Zoning rules still under development

A Data Center Study Committee, led by Deputy City Attorney James Walters, is currently drafting the final ordinance related to data center development. The committee is examining land use, utilities, engineering, finance, and public safety impacts. They are also looking at how to classify hyperscale facilities, similar to discussions in Oklahoma City, which is considering separate rules for facilities larger than 75 megawatts.

Spurgeon is seeking a consultant to help draft zoning codes and regulatory modifications. Given the complexity of the issues, he indicated that it is conceivable he may ask the City Council to extend the moratorium by another six months. This extension would provide additional time to finalize the regulatory framework before any new proposals are considered, ensuring that the city’s infrastructure and community standards are adequately protected.