Kiowa Council Authorizes Negotiation with Black Mountain Energy for Water Purchase

McAlester City Council has taken a significant step towards a potential partnership with Black Mountain Energy, approving a motion to negotiate a raw water purchase agreement for a proposed data center. During the regular council meeting on August 12, 2025, the council authorized city officials to engage in discussions with Black Mountain Energy regarding the sale of approximately 6 million gallons of raw water per day, which is essential for cooling operations at the planned facility south of Kiowa.

City Manager Dave Hargrove emphasized that while the council has given the green light to negotiate, any finalized agreement will return to the council for final approval. This cautious approach ensures that the council retains oversight over the terms of the agreement, which are still being defined.

Caroline O'Brien from Black Mountain Energy provided a brief overview of the project, clarifying that the data center will not be involved in cryptocurrency operations, but will focus on artificial intelligence computing. The facility is designed to be quieter than traditional air-cooled data centers, addressing community concerns about noise pollution.

In addition to the water agreement, the council discussed budget amendments for the fiscal year 2024-2025. City officials are working to finalize adjustments to ensure the budget aligns with actual expenditures and revenues following the end of the fiscal year on June 30.

The council's decisions signal a proactive approach to economic development and resource management, with the potential for significant benefits to the local community as negotiations with Black Mountain Energy progress. Further updates on the water agreement and budget amendments are expected in future council meetings.