Google has been revealed as the Fortune 100 company that acquired land in north Stillwater to develop a data center campus that could become one of the l argest economic development projects in Oklahoma history.
“Google choosing Stillwater is a testament to the strength of our economy, our workforce, and our commitment to community investment,” Mayor Will Joyce said in a press release. “This project is a tremendous collaborative effort among the city, our economic development partners at the Stillwater Chamber of Commerce and several local stakeholders.”
All taxing local jurisdictions approved a 25-year tax incentive agreement for the project, which had previously been referred to under the code name “Project Rohan” and was linked to a subsidiary called Kipper LLC.
The agreement provides a property tax exemption for up to six data centers, each requiring $500 million in private investment, bringing the potential total investment to $3 billion.
Payne County Commissioner Rhonda Markum, who cast the sole dissenting vote, expressed concerns about the lengthy tax deferment.
“I have several constituents that are not in agreement with the 25-year tax deferment,” Markum said. “They're really not in agreement with the data center either, but they're not for the 25-year tax deferment.”
In exchange for the tax incentive agreement (TIA), Google will make annual payments in lieu of taxes (PILOTs) to local taxing en tities, including Stillwater Public Schools, Meridian Technology Center, Payne County, and the Payne County Health Department.
The TIA encompasses six phases, although the Stillwater City Council has approved only the first two phases of the project. Each phase corresponds to construction of a single 300,000 square foot facility.
Committing to the subsequent four phases would necessitate substantial investment in the city’s water supply infrastructure to meet anticipated demand.
Gov. Kevin Stitt said it’s because of the state’s energy developments which created one of the most affordable and reliable grids in the nation that companies such as Google are moving to Oklahoma.
“This data center in Stillwater is going to be more focused around AI [artificial intelligence]. So that’s really good for technical degrees and high-tech jobs,” Stitt told reporters last week.
The data center will be developed on 770 acres of property situated near Highway 177/Perkins Road and East Richmond Road.
City officials believe the data center could potentially lower electricity rates for Stillwater residents.
“Typically a high load factor load like this, which means that it's pulling about 90% of its pe ak capacity at all times, the more kilowatt hours you sell typically drives down the cost of ener gy,” Loren Smith, Stillwater’s electric utility director, said at the county commissioners’ meeting.
Stillwater voters approved an agreement in the Nov. 5, 2024, general election that permitted Oklahoma Gas & Electric to su pply high-voltage electricity for the project, alleviating the burden on Stillwater’s local electric utility.
The agreement also encourages Google to commit to ca rbon-free energy sources when possible for the project, aligning with the company’s sustainability goals.
City leaders expect Google to begin construction this year, with the initial phase taking approximately two years to complete. The agreement stipulates that the company must commence construction on the f inal phase within the next 10 years.
“City administration and staff will continue to work closely with Google throughout the development phase. We look forward to the successful implementation of the project and the positive economic impact they will have on our community,” City Manager Brady Moore said.
Google already has a signif icant presence in Oklahoma, operating a massive data center complex in Mayes County near Pryor since 2007. According to Google, they have invested more than $3 million in schools and nonprofits in Mayes County since 2011.