OK — State Policy Updated 2026-07-17

Oklahoma

Sales and use tax exemptions Property tax (ad valorem) exemption Other incentive mechanisms Statewide moratorium proposal Local moratoriums and zoning pauses Zoning and land use controls Environmental and utility constraints Utility Regulation

Methodology

  • Sources prioritize Oklahoma statutes, administrative code, legislative bill texts, bill-history pages, state/local government publications, utility/regulatory materials, and project/operator announcements. News sources are used where primary sources were unavailable for local votes, opposition, or project-status changes.
  • This update specifically searched for developments from Feb. 1, 2026 through July 17, 2026.

1. Incentive programs

Sales and use tax exemptions

  • Computer services and data processing equipment exemption (state sales/use tax): Oklahoma exempts sales of machinery and equipment, including computers and data processing equipment, purchased by qualifying establishments primarily engaged in computer services/data processing that meet out-of-state revenue thresholds. Eligibility requires annual affidavit filing with the Oklahoma Tax Commission. Statute: 68 O.S. § 1357(21); implementing rule: OAC 710:65-13-54. Oklahoma Statutes, accessed 2026-06-10; OAC 710:65-13-54, accessed 2026-06-10
  • Web search portal exemption (state sales/use tax): Oklahoma exempts sales of tangible personal property, machinery, and equipment to a web search portal (NAICS 519130) located in Oklahoma if it derives at least 80% of revenue from out-of-state customers. Statute: 68 O.S. § 1357(38); implementing rule: OAC 710:65-13-650. Oklahoma Statutes, accessed 2026-06-10; OAC 710:65-13-650, accessed 2026-06-10
  • Repealed refund program: A separate refund of state/local sales and use taxes for computer services/data processing and R&D (68 O.S. §§ 54001-54006) was repealed effective Nov. 1, 2022. OMES Incentive Evaluation Commission materials continue to identify the refund program as repealed, while the remaining sales-tax exemption under 68 O.S. § 1357(21) remains part of the active tax code. OMES Incentive Evaluation Commission, accessed 2026-06-10

Property tax (ad valorem) exemption

  • Five-year ad valorem exemption for qualifying manufacturing facilities: Oklahoma’s manufacturing/R&D exemption can include certain establishments primarily engaged in computer services and data processing, subject to NAICS classification and out-of-state revenue requirements under 68 O.S. § 2902. The Oklahoma Tax Commission’s 2026 annual report states that claims for tax-year 2025 exempt-manufacturing reimbursements totaled $88,635,421, including $34,361,140 in the “Computer” reimbursement type. Oklahoma Tax Commission, 2026-03-20
  • Attempted 2026 restriction died: HB 4424 (2026) would have narrowed the ad valorem exemption by requiring computer-services/data-processing establishments to be “in operation” before Jan. 1, 2027, with installed operational equipment, active third-party customer agreements, and verifiable gross revenue. It received no vote after its Feb. 3 referral and died when the Legislature adjourned sine die on May 14, 2026. Oklahoma Legislature HB 4424 introduced bill, 2026-01-15; Oklahoma Legislature HB 4424 bill history, accessed 2026-07-17; Oklahoma Senate, 2026-05-15
  • Reporting change (2025): SB 577 (2025) amended 68 O.S. § 2902 and 68 O.S. § 205 to require reporting of job-creation and payroll data for recipients of the five-year ad valorem exemption and to allow disclosure to the Incentive Evaluation Commission. Oklahoma Legislature SB 577 fiscal impact statement, 2025-03-13

Other incentive mechanisms (local)

  • PILOT/local incentive packages are being used or discussed project-by-project, including the Stillwater Google campus. These are negotiated locally rather than created by a statewide data-center-specific incentive statute. KOSU, 2025-03-12; City of Stillwater, accessed 2026-06-10
  • Claremore / Project Mustang: On May 18, the Claremore City Council approved a project plan creating three incentive districts and a tax-incentive agreement for a proposed campus of up to three data centers. The official plan contemplates at least $1 billion per phase, ad valorem exemptions paired with annual PILOTs of $4.75 per building square foot (escalating 1% annually), and a $250,000 annual community-betterment payment for the first data center; the plan states that no public investment is projected and that the company will fund required public infrastructure. These are negotiated terms and developer projections, not realized revenue. City of Claremore project plan, 2026-05-04; City of Claremore meeting minutes, 2026-05-18

Clean energy conditions: The statewide tax exemptions above are based on industry classification, use, and revenue thresholds; the statutory/rule text reviewed does not impose a clean-energy condition on eligibility. Oklahoma Statutes, accessed 2026-06-10; OAC 710:65-13-54, accessed 2026-06-10; OAC 710:65-13-650, accessed 2026-06-10

2. Restrictions and moratoriums

Statewide moratorium proposal

Local moratoriums and zoning pauses

  • Oklahoma City: On Apr. 21, 2026, the City Council unanimously approved an immediate temporary moratorium on new data centers within city limits. The moratorium paused acceptance, processing, and issuance of rezoning requests and permits for data-center construction or expansion through Dec. 31, 2026, or earlier if zoning-code amendments are approved, and it exempted two pending rezoning cases. City of Oklahoma City, 2026-04-21
  • Oklahoma City amendments/exceptions: On May 19, 2026, the Council voted 7-2 to exempt facilities with loads of 75 MW or less and several projects already in progress, including 7725 W. Reno Avenue and the Expand Energy campus in addition to two initially exempted sites. KOSU, 2026-05-20
  • Tulsa: On Mar. 25, 2026, the Tulsa City Council approved a temporary moratorium on new data-center building permits while city planners review zoning treatment for data centers. Local coverage reported the pause running through Dec. 31, 2026, with Project Anthem phases already underway allowed to proceed. Tulsa City Council, 2026-03-25; KTUL, 2026-03-26
  • Pawhuska: On Apr. 14, the Public Works Authority rejected a utility load-guarantee letter and the city adopted a 3-2 moratorium through Dec. 31 (or earlier adoption of new regulations). The action paused a proposal to convert an existing warehouse into a 10 MW facility with an estimated 8 MW IT load. City of Pawhuska meeting packet and Resolution 2026-04-01, 2026-04-13; KJRH, 2026-04-14
  • Edmond: On June 8, 2026, Edmond City Council voted 5-0 for a moratorium through Dec. 31, 2026, on accepting data-center applications. The city stated there were no pending data-center applications inside Edmond city limits and that the pause was intended to study water, electricity, zoning, and cost-recovery issues. City of Edmond Council video and agenda, 2026-06-08
  • Broken Arrow: After a prospective developer allowed its land letter of intent to expire, ending that specific proposal, the City Council authorized a six-month moratorium on June 15 to study data-center impacts and regulatory options. City of Broken Arrow, 2026-06-15
  • Luther: The Board of Trustees adopted a six-month moratorium through Dec. 31 that covers both new applications and pending proposals, including Beltline Energy’s proposal on roughly 320 acres. Residents raised water, noise, health/safety, property, and rural-character concerns. KOSU, 2026-06-22
  • Norman: On June 23, the City Council unanimously imposed a moratorium on data-center applications and permits through June 9, 2027, while the city develops zoning and utility standards. City of Norman Ordinance O-2526-57, 2026-06-23; KGOU, 2026-06-25

Zoning and land use controls (general authority)

  • Lawton data-center zoning ordinance: On Feb. 24, the City Council approved an ordinance allowing facilities of 2 MW or less in the I-1 district with utility clearance and requiring facilities above 2 MW to obtain a use permitted on review in the I-4 district through Planning Commission and Council hearings, with a binding site plan and case-by-case water review. City of Lawton, 2026-02-27
  • Claremore utility and land-use approvals: On May 18, Claremore approved the Project Mustang development agreement and related incentive plan. The public authorities also approved an extra-large-load retail tariff for service up to 250 MW, a retail electric-service agreement, supplemental supply terms, and an ordinance requiring mega-load users to bear all costs attributable to their service. City of Claremore meeting minutes, 2026-05-18
  • Piedmont / Project Open Sky proposals: Piedmont published a draft Ordinance 2026-003 that would create an Industrial Technology district and require a special-use permit for data centers, while its transparency portal lists separate Project Open Sky PUD and annexation materials. The posted ordinance still contains blank approval/signature fields, and the reviewed public record did not show final City Council approval of the campus as of July 17. City of Piedmont draft Ordinance 2026-003, accessed 2026-07-17; City of Piedmont Planning and Zoning packet, 2026-06-01; City of Piedmont transparency portal, accessed 2026-07-17
  • Municipal zoning authority: Oklahoma municipalities have statutory authority to regulate land use and zoning for health, safety, morals, and general welfare under 11 O.S. § 43-101, and must establish a board of adjustment when exercising zoning powers under 11 O.S. § 44-101. 11 O.S. § 43-101, accessed 2026-06-10; 11 O.S. § 44-101, accessed 2026-06-10
  • County zoning authority (unincorporated areas): Counties may establish planning commissions/boards of adjustment and zoning authority under 19 O.S. § 865.51 and related sections. 19 O.S. § 865.51, accessed 2026-06-10

Environmental and utility constraints (generally applicable)

  • Water withdrawals and new cooling restriction: OWRB requires permits for non-domestic groundwater and surface-water uses. Enacted SB 259, effective Nov. 1, 2026, prohibits issuing a groundwater permit for data-center cooling that consumes groundwater through open-air evaporation or non-recirculating discharge; an applicant must instead demonstrate closed-loop, dielectric-immersion, or comparably low-consumptive recirculating cooling. The statute governs groundwater permits, not water purchased from a municipal or rural utility. OWRB reported in July that no Oklahoma data center had obtained its own water permit, exposing a continuing reporting gap for utility-supplied water. Oklahoma Legislature SB 259 enrolled bill, 2026-05-20; Investigate Midwest, 2026-07-14
  • Air permits: Data centers that trigger air permitting thresholds, such as through backup generators, are subject to Oklahoma DEQ air quality construction and operating permit requirements under OAC 252:100-8-4 and OAC 252:100-7-18. OAC 252:100-8-4, accessed 2026-06-10; OAC 252:100-7-18, accessed 2026-06-10

3. Local governance and preemption

4. Legislative activity (2024-2026)

5. Notable projects and operators

  • Google (Pryor, Mayes County): Google states that since the Mayes County data center was announced in 2007, it has invested more than $15 billion in Oklahoma and generated $2.6 billion in economic activity; Google also lists a 2025 announcement of $9 billion in Oklahoma cloud and AI infrastructure investment. Google Data Centers, accessed 2026-06-10
  • Google (Stillwater, Payne County): Oklahoma Commerce and Stillwater report Google land acquisition and a planned multi-phase data center campus near Perkins and Richmond Roads; 2025 local reporting described a PILOT-style arrangement and anticipated local revenues. Oklahoma Department of Commerce, 2025-03-12; City of Stillwater, accessed 2026-06-10; KOSU, 2025-03-12
  • Google / OG&E service agreements (Muskogee and Stillwater): On Apr. 30, OG&E and Google announced agreements to serve three new data centers—two in Muskogee and one in Stillwater. OG&E said Google would pay all interconnection costs and contracted generation costs whether or not it uses the full capacity; the agreements were filed for OCC approval. The sites are part of Google’s previously announced $9 billion 2025 Oklahoma investment, not a separate $9 billion 2026 commitment. OG&E, 2026-04-30; Google, 2026-04-30
  • Google / Project Spring (Sand Springs, Osage County): On Feb. 3, 2026, Sand Springs City Council voted 6-1 to rezone an 827-acre site along Highway 97 for Project Spring, a Google-backed data center developed by White Rose Partners; reporting said construction was expected to begin in 2027 with operations expected by 2029. Public sources reviewed did not disclose a final MW figure. Journal Record / Tulsa Flyer, 2026-02-05; Project Spring, updated 2026-01-14
  • Meta / Project Anthem (Tulsa): Meta announced and broke ground on its first Oklahoma data center in east Tulsa on Apr. 21, 2026. The project is more than $1 billion, spans more than 2 million square feet, is expected to support more than 1,000 peak construction jobs and about 100 operational jobs, and includes more than $25 million in local road and water infrastructure improvements. Meta says it will match 100% of the facility’s electricity use with clean energy and has projects under contract adding more than 1,500 MW of clean energy to the Oklahoma grid; public sources reviewed did not disclose the Tulsa campus’s peak MW load. Meta Data Centers, 2026-04-21; Partner Tulsa, 2026-04-21
  • Project Atlas (Coweta, Wagoner County) - withdrawn: Beale Infrastructure withdrew the 270-acre Project Atlas rezoning application on Mar. 30, 2026. The City of Coweta statement quoted in reporting said that without rezoning, “Project Atlas is not moving forward in Coweta.” Tulsa Flyer, 2026-03-30; Data Center Dynamics, 2026-03-31
  • Project Mustang (Claremore, Rogers County) - locally approved: Claremore approved the project plan, development agreement, tax-incentive agreement, and electric-service package on May 18. The roughly 255-acre proposal allows up to three phases of at least $1 billion each and electric service up to 250 MW; these are authorized/proposed maxima, not completed investment or operating load. City of Claremore project plan, 2026-05-04; City of Claremore meeting minutes, 2026-05-18
  • Core Scientific / Muskogee campus expansion - acquisition pending: On May 6, Core Scientific announced an agreement to acquire Polaris Forge 2 for approximately $421 million in cash, plus up to $40 million if an additional 40 MW is secured. The package included 440 MW of continuous OG&E service rights; Core Scientific said it had assembled roughly 250 acres and planned an approximately 1.5 GW gross / 1 GW leasable campus, including an unleased 82.5 MW building under construction. Closing was expected in early Q3 and remained described as pending in the reviewed sources as of July 17. Core Scientific SEC filing, 2026-05-06; Core Scientific, 2026-05-06
  • Project Emerald (Pittsburg County) - in development; incentive decision pending: IREN identifies a 1,600 MW, roughly 2,000-acre campus with substation energization planned for 2028. Pittsburg County’s proposed two-district incentive plan offered partial ad valorem abatements tied to actual construction; after a June 22 public hearing, commissioners tabled the plan for renegotiation amid objections over the proposed tax terms, noise, water, and incomplete public details. IREN, accessed 2026-07-17; Pittsburg County public-hearing notice, 2026-05-18; Blockspace, 2026-06-24
  • Project Open Sky (Canadian County/Piedmont area) - proposed: Cloverleaf Infrastructure proposed a campus on the eastern edge of Cimarron Electric Cooperative’s territory; as of July 17, the public materials show ongoing PUD/annexation and utility discussions, not final construction approval. Cimarron Electric Cooperative, 2026-05-07; City of Piedmont Planning and Zoning packet, 2026-06-01; City of Piedmont transparency portal, accessed 2026-07-17

Notes / gaps