PSO Just Changed the Conversation on Data Centers

Just a few months ago, it felt like every conversation about AI ended the same way. Not the exciting part about artificial intelligence, or the fun of swapping yourself into a 17th-century painting either. It was all about data centers.

Well, not data centers themselves, but the questions of how they would affect all of the communities they were pitched to at the time. Who was going to pay for all those massive new buildings? The water usage in drought-prone areas, and who was going to be stuck with the bill to build enough electrical infrastructure to feed these beasts?

Back in February, I wrote about Oklahoma utilities asking regulators for new ways to recover the costs of serving those giant energy users.

For a lot of people, that translated into a simple term... Our power companies asked if they could have Oklahoma power consumers go ahead and pay for the build-outs.

There was revolt.

Fast forward six months, and the conversation has changed quite a bit.

Some of the giant data center projects announced around the country have been canceled. Others have only been delayed, but the AI boom hasn't disappeared. That being said, it's definitely become more complicated than it looked six months ago.

If you live in areas serviced by PSO, this landed in your inbox last week.

PSO says it's joining something called the "Ratepayer Protection Pledge," promising that existing customers shouldn't be paying to build infrastructure for new large electricity users.

In plain English...

They say growth should pay for growth.

If a new data center needs expensive upgrades to the electrical grid, PSO seems to be now agreeing with Oklahomans who insist these companies should be covering their own costs.

That's the response from the power companies consumers wanted to hear back in February, but we'll settle for July too.

Whether you believed your electric bill was headed higher because of AI or not, nobody likes the idea of subsidizing a billion-dollar project owned by someone else.

Of course, this pledge isn't the same thing as a final decision either.

PSO has also filed a proposed tariff with the Oklahoma Corporation Commission that would require large energy users to make long-term commitments and help pay for the infrastructure they'll need.

If the Oklahoma Corporation Commission approves it, that's where the real protections would come from.

It's an interesting change in tone.

Six months ago, the conversation was mostly about how much power these facilities would need and who would pay for it... Now the conversation is becoming whether data centers can pay their own way.

All in all, this might turn out to be one of those rare times when the OCC actually looked out for us all.