Data center project promises $3 billion boost to local economy

In a recent government meeting, officials discussed a significant proposal for the development of a data center campus spanning 386 acres within city limits. The project, which aims to create both temporary and permanent high-quality jobs, is expected to inject at least $500 million per phase into the local economy, with plans for up to six phases of development.

The initial phases will each include a 300,000 square foot data center and supporting facilities, with the potential to create 30 new jobs per phase and hundreds of construction jobs during the building process. To facilitate this development, the city plans to offer tax incentives, including an ad valorem tax exemption on new investments within designated incentive districts.

The project is structured under the Oklahoma Development Act, which allows for tax exemptions that can extend up to 25 years for qualifying businesses in economically distressed areas. The city has identified the project area as an enterprise zone, which is designed to stimulate investment in underdeveloped regions.

As part of the agreement, the company will make community betterment payments and payments in lieu of taxes (PILOT) to local taxing entities. For the first phase, the total PILOT payment is projected to be $867,568 annually, with increases of 1% each year. Additionally, community betterment payments for the first two phases are expected to exceed $7.6 million combined.

The city anticipates that the project will generate over $111 million in revenue from community betterment payments and franchise fees over 25 years, significantly contributing to public infrastructure and economic development initiatives. The review committee, comprising representatives from various taxing jurisdictions, unanimously recommended approval of the project plan, highlighting its positive financial impacts on the community.

Overall, the proposed data center development is positioned as a transformative opportunity for the city, promising substantial economic benefits and job creation while addressing local infrastructure needs.