Oklahoma City ties data-center approval to 75,000-gpd water cap
City of Oklahoma City Utilities, Oklahoma · Meeting date: October 27, 2026 · Published: October 28, 2026
The City Council approved two planned-unit developments for a proposed data-center campus split by Interstate 40, after a year of negotiations that put potable-water use and groundwater protection at the centre of the conditions. No building permit can be issued until the city, developer and project end user execute a community benefits agreement.
Key points
- Council approved PUD-2105 at 3025 North Frisco Road and PUD-2124 at 13921 NW 23rd Street by 6-3 votes.
- The developer presented a 75,000-gallon-per-day potable-water limit, described by the Assistant Utilities Director as just over 2 million gallons per month and comparable with a medium-sized industrial user.
- The development is barred from using private wells; Councilwoman Katrina Avers said the applicants agreed in the ordinance to give up rights to groundwater beneath the sites.
- A legally binding community benefits agreement involving the city, developer and end user is required before building permits may be issued.
Full report
Oklahoma City Council has approved two rezoning ordinances for a proposed data-center campus in west Oklahoma City, attaching potable-water and groundwater restrictions that became a central part of the year-long negotiation over the project.
The council voted 6-3 to approve PUD-2105 for 3025 North Frisco Road and PUD-2124 for 13921 NW 23rd Street. The applicant described the development as being divided by Interstate 40, with 110 acres north of the highway and 184 acres south of it.
A 24-page Exhibit D incorporated into the planned-unit developments sets operational conditions for the data-centre use. The developer told the council that potable-water use would be capped at 75,000 gallons per day and that the scheme had been designed to work within that limit. A council member said the cap could be raised with Utilities Department approval, although the applicant did not specify the conditions under which an increase could be considered.
Josh Morgan, Assistant Utilities Director, said 75,000 gallons per day equates to just over 2 million gallons per month and is comparable with demand from a medium-sized industrial customer. He said the city had sought to avoid granting the project more water supply than a standard medium-sized industrial user, and that the expected potable use was for domestic purposes rather than cooling.
The approval also prohibits private wells. Councilwoman Katrina Avers said the landowners could otherwise have had rights to drill for groundwater under state rules, but that the developer agreed to relinquish those rights in the ordinance. She said the potable-water limit was comparable with the demand of 200 to 400 homes, while the same land area could potentially accommodate up to 4,000 homes.
Water concerns were a major element of public opposition. One Yukon resident questioned the combined effects of multiple proposed data centres in the area on water supplies, wastewater systems and other infrastructure. Another urged the council to consider whether Oklahoma City would have sufficient water for projected growth and existing wholesale customers, including Yukon.
The approved conditions require the developer, owner, tenant or end user to enter into a road-maintenance agreement before building permits are issued. They also require a legally binding community benefits agreement among the city, applicant and project end user before permits can be issued. The applicant said this agreement would include commitments on water use and other matters.
Mayor David Holt said the vote should not be interpreted as opening Oklahoma City generally to data centres. He said the application predated the city’s data-centre moratorium and that he had asked the city manager to bring forward a six-month extension of that moratorium.
This summary was generated by AI based on the source document and may contain errors.
Source: City Council, City of Oklahoma City Utilities