Data centers, Corporation Commission to be debated in looming legislative session

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Energy policy — particularly data centers and the Oklahoma Corporation Commission — will be key topics of debate when the Oklahoma Legislature convenes for the 2026 regular session that starts next month.

More than 60 energy-related bills were filed before the deadline, reflecting the growing impact of energy infrastructure, power demand, and regulatory oversight of the electricity industry in this state. While some of the measures include fully developed policy proposals, many were introduced as shell bills — placeholders that allow lawmakers to add detailed language later.

Shell bills are commonly used to preserve legislative flexibility, meet filing deadlines, or serve as vehicles for negotiations that develop closer to session. Critics note they can also limit public scrutiny if substantive language is added late in the process.

Among the most active areas of legislation are bills addressing hyperscale data centers, which have drawn opposition in some Oklahoma communities over concerns related to heightened electricity demand, rate hikes, water use, and infrastructure strain.

Rep. Amanda Clinton, D-Tulsa, filed several measures intended to impose oversight on data centers.

One of the measures is House Bill 3394, the Oklahoma Hyperscale Data Center Directory Act. That bill would require the Oklahoma Corporation Commission to create and maintain a statewide directory of hyperscale data centers.

HB 3394 states that a “hyperscale data center” is “a large-scale data center facility primarily engaged in information technology operations designed for scalability and redundancy, with a total conditioned space of at least 50,000 square feet and expected annual electric usage of at least 10,000 megawatt hours.” That definition includes facilities that house cloud computing, distributed computing, or massive server clusters for commercial use, the bill states.

Clinton also filed HB 3392, directing the OCC to conduct a comprehensive study of “largeload” electricity users.

The bill defines a “large load customer” as one that has a single-site or aggregated load with a maximum demand of 50 megawatts or greater, “or such other threshold as may be established by rule of the Commission,” and is primarily engaged in operation of data centers, cloud computing facilities, server farms, or digital asset processing facilities; artificial intelligence, high-performance computing, or largescale information processing, or advanced manufacturing, industrial processing, or other operations requiring continuous or near continuous high electric demand.

HB 3392 would examine the impact of large-load customers on:

• Electric generation, transmission, and distribution infrastructure.

• System reliability and resource adequacy.

• Utility planning and transmission development.

• Electricity rates and cost allocation.

• Potential cross-subsidization affecting existing ratepayers.

• Infrastructure investments driven by large-load customers.

As part of its research, the Corporation Commission would be directed to assess whether “the costs associated with serving large-load customers “are being equitably and proportionately allocated based on cost causation principles;” whether “existing or proposed rate structures, tariffs, special contracts, or incentive arrangements result in direct or indirect cost shifting to residential, commercial, agricultural, or other customers not meeting the definition of large-load customer;” and whether current regulatory practices “adequately ensure that large-load customers bear the full incremental costs of service attributable to their demand.”

The bill would instruct the commission to deliver its study results to legislative leaders “no later than Dec. 1, 2027.”

A third measure, HB 3397, would establish a separate electricity service classification for large energy-use facilities, primarily data centers, with its own tariff schedule distinct from other commercial or industrial users. The bill defines a “large energy-use facility” as one that “uses or is able to use 20 megawatts or more” of electricity.

On the other side of the Capitol rotunda, Sen. Kendal Sacchieri, R-Blanchard, filed Senate Bill 1488, proposing a moratorium on new data centers until Nov. 1, 2029. The bill also would require the Corporation Commission to study the potential impacts of data centers on:

• State water supplies, including aquifers, streams, and wastewater systems.

• Utility rates.

• Property values within a three-mile radius of proposed facilities.

• Other areas deemed relevant by the Corporation Commission.

Meanwhile, Rep. Mark Lawson, R-Sapulpa, introduced HB 3621, creating the Oklahoma State Data Center. Unlike private hyperscale facilities, the proposed center would operate under the Legislative Service Bureau, serving as the state’s primary hub for applied population research, coordination with the U.S. Census Bureau, and management of special censuses.

Several lawmakers filed shell bills focused on modernizing the Corporation Commission, signaling potential regulatory changes ahead.

Rep. Trey Caldwell, R-Faxon, filed multiple shell measures, including:

• HB 3992 - Corporation Commission Modernization Act of 2026.

• HB 3993 - Corporation Commission Modernization Act of 2026.

• HB 3986 - Gross Production Tax Modernization Act of 2026.

• HB 3987 - Environmental Quality Act of 2026.

Each bill contains minimal statutory language and is expected to be fleshed out later in the session.

Similarly, Rep. Nick Archer, R-Elk City, filed HB 3192, another shell bill also titled the Corporation Commission Modernization Act. Archer also filed HB 3176, which would establish the Oklahoma Gas, Artificial Intelligence, and Space Research Hub (GAS Hub).

HB 3176 proposes creation of a national research hub focused on oil, natural gas, artificial intelligence, and space technologies. The GAS Hub would be the state’s central coordinating entity for recruiting and hosting a U.S. National Laboratory, functioning as a state-federal partnership to attract funding, designation, and long-term operations.

As the session approaches, lawmakers, regulators, utilities, and local communities are closely watching how these proposals evolve.