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July 20, 2026

New water law has a loophole for data center operators

Water remains a big topic when it comes to any discussion of data centers. It is the focus of those opposing data centers proposed in Luther, Piedmont and Yukon in the central part of Oklahoma.

A recent report by Investigate Midwest found a loophole in an existing bill signed into law last May by Gov. Kevin Stitt.

The measure, Senate Bill 259, authored by Rep. Carl Newton and Sen. Brent Howard, allows groundwater permits only for data centers using cooling systems designed to conserve and recycle their needed water. However, data centers do not need the groundwater or surface water permits to operate their facilities. They can purchase water from municipal utilities.

Investigate Midwest found that of the reported 55 facilities in Oklahoma, based on data center development advisory firm Baxtel, none applied for a water permit.

“If a data center wants to purchase water, they can do that, and they do not get a permit,” said Julie Cunningham, director of the Oklahoma Water Resources Board told the journalism group. “If there’s a water supplier, if there’s a community or rural water district that has water rights for industrial use, then they buy water as a customer of that system. So far, we have not had any permits issued specifically to data centers.”

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