OKLAHOMA CITY — The Oklahoma City Council on Tuesday scaled back its newly enacted moratorium on data center development, carving out exemptions for smaller projects after industry leaders warned the policy risked stalling investment.
Under the amended ordinance, data centers with electrical loads of 75 megawatts or less can continue moving through the city approval process, while larger, high-demand facilities remain paused through the end of 2026.
The council approved the changes on a 7-2 vote following a crowded and at times contentious public meeting, according to The Oklahoman.
The rollback comes just weeks after city leaders imposed a broad temporary halt on new data center permits and rezoning applications, saying they needed time to evaluate the industry’s impact on Oklahoma City’s electric grid, water resources and long-term land use planning.
But business groups and developers pushed back, arguing the original moratorium was too sweeping and could deter smaller-scale projects that place fewer demands on infrastructure.
As reported by The Oklahoman, several speakers urged council members to narrow the policy, warning it could send a negative signal to companies considering Oklahoma City for future investment.
Council members supporting the amendment said the 75-megawatt threshold strikes a balance — allowing more modest facilities to proceed while preserving restrictions on large, energy-intensive “hyperscale” developments that prompted the initial pause.
The revised ordinance also keeps exemptions for certain rezoning applications already in progress, ensuring those projects can continue despite the broader moratorium.
City officials have said the temporary restrictions are intended to give planners time to develop permanent regulations governing data center growth, with a focus on infrastructure capacity and compatibility with existing development.
The debate reflects a broader challenge facing fast-growing cities nationwide as demand for data centers accelerates alongside artificial intelligence and cloud computing — and as local governments weigh economic development opportunities against rising concerns over energy use and resource strain.
Oklahoma City planning staff are expected to return later this year with recommendations for long-term standards.
Source: Reporting by The Oklahoman.
