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Council signs nonbinding letter to join regional consortium for proposed Atoka energy/data park
Summary
McAlester joined other municipalities by approving a nonbinding letter of intent to participate in a draft Master Utility Service Agreement for a proposed Atoka energy park and data‑center complex. Presenters said participation requires no city funding now and could yield revenue shares if the large project moves forward.
The McAlester City Council approved a nonbinding letter of intent to participate in a regional consortium that would support a proposed energy park and data‑center complex near Atoka.
Representatives from Atoka, including Mayor Brian Cathy and partner John Hardy, briefed the council on a concept to build on‑site generation and data center capacity to serve large computing users. Presenters described the approach as a self‑contained generation and data‑center park designed to avoid overloading regional grid capacity: the project team said it plans on constructing generation and facility infrastructure sized to the users served rather than relying solely on existing transmission upgrades.
Presenters described the proposal as an economic development consortium: McAlester’s signed letter would express interest and allow the project team to include McAlester in underwriting and demographic materials that the lenders and developers require. Presenters emphasized the commitment being requested is nonbinding and that no municipal funding or obligation is authorized by the letter; any formal municipal participation, revenue sharing or service agreements would be negotiated and returned to each jurisdiction for approval.
Project proponents cited potential local benefits if the project advances: construction employment, operational jobs (presenters estimated tens to a few hundred operational positions), hotel and rental demand during construction and the potential for revenue sharing from a later financial structure. Speakers said underwriting and contractual guarantees would be provided by third‑party institutional partners and that the master utility service agreement (MUSA) structure would be explicit about risk allocation and oversight.
Councilors asked about how revenue would flow and who signs the MUSA; presenters said formulas and shares would be worked out once the full consortium and underwriting commitments are secured and that McAlester would receive periodic payments under a negotiated agreement if it participated. The council voted to approve the letter of intent by roll call; staff said the letter can be edited for language to reflect council’s preferences before final transmission.
The vote does not bind the city to future agreements or funding; it allows the project team to present McAlester among a broader regional demographic footprint required by lenders.
