If energy analysts are correct, a tidal wave of electricity demand is on Oklahoma’s horizon. Data centers are being welcomed into the state and framed as economic boons for communities like Pryor and, soon, Stillwater.
In three years, data centers could account for up to 12% of the country’s energy consumption, according to the U.S. Department of Energy and the Lawrence Berkeley National Laboratory.
To satisfy that projected demand, utility companies like Public Service Company of Oklahoma are asking the state to encourage new energy generation.
A new state law requiring utility regulators to investigate a future with advanced nuclear energy generation could fit the bill. A working group of researchers, utilities and experts is being assembled for a feasibility study on the low-carbon energy that will wrap up in March.
In an energy landscape primarily comprised of natural gas and wind generation, the regulating agency sought outside help to decide the state’s nuclear future.
“We don't regulate nuclear energy here at the commission. We don't have nuclear experts,” said Mark Argenbright, director of the OCC’s public utility division. “So, to create this report, we went to the Hamm Institute and partnered with them, and we're identifying nuclear experts that we have access to that can speak to these nuclear issues.”
The Southwest Power Pool, of which Oklahoma is a part, reports the nuclear energy footprint across the transmission organization is small. Wind is the largest contributor, followed by natural gas and coal, according to a spokesperson with the corporation.
Researchers with the University of Oklahoma’s Institute for Public Policy Research and Analysis will also be part of the group. They’ve collected data on the public perception of nuclear energy going back to the 1990s.
Argenbright said he has seen a shift in the way people view nuclear power as energy demands climb.
“Growing up in the 60s and 70s, public perception was completely different,” he said. “Those things seem to be changing, and I think those are driven by the need – the hyperscalers with AI and data centers – there's a need for massive amounts of energy.”
Public perception of renewable energy could also be changing in Oklahoma, even as experts warn of the incoming energy demand.
Lawmakers this year targeted renewable energy in multiple bills, including Senate Bill 2, which opponents said would have restricted the wind industry in certain parts of the state. Some of those same legislators voted to pass the nuclear energy feasibility study bill, including Rep. Brad Boles (R-Marlow), who co-authored the measure.
The lawmaker, who is also campaigning for a seat on the Corporation Commission next year, said nuclear energy could provide dependable generation for the state. Although batteries can store extra energy from wind and solar to be called upon during high demand, they’re still not seen as continuous sources.
“There's no doubt that nuclear is considered a more reliable baseload energy source than wind/solar, which are considered intermittent sources, but nuclear is also more costly than any of our current energy sources due to the initial [capital expenditure] cost,” he said in an email.
Boles said the study should determine if advanced nuclear energy is safe, practical, cost-effective and beneficial for long-term generation.
Costly challenges to build nuclear generation
Building nuclear power reactors in Oklahoma would require a financial investment that outweighs other forms of generation. Traditional nuclear technology can cost tens of billions of dollars, like Georgia’s Plant Vogtle, which finished last year.
Newer tech, such as advanced small modular reactors, would also come with a steep price. The technology is designed to be safer, but has yet to come on the market.
Should a utility company receive approval to build a reactor in Oklahoma, the cost would likely be passed down to customers the same way as other power plants.
“So, the need has to be pretty significant to justify the investment,” Argenbright said. “Now, I've seen where some of the hyperscalers, be it Google or Microsoft, they're entering into some agreements to have these kinds of facilities built, and they're taking on a very significant piece of the financial picture to overcome that initial investment that’s required.”
“I think it’s going to cause some creative looks at financing and, of course, in our traditional role here at the commission, impact on ratepayer is something we're very concerned about,” he said.
A new option for large companies building data centers in Oklahoma is to generate energy on-site. House Bill 1374, authored by Boles, gives entities a “behind-the-meter” alternative, allowing them to generate power while unplugged from the grid.
Brandy Wreath, executive director of the OCC, said companies could one day build nuclear energy infrastructure using the new law.
“As long as they follow all the appropriate state and federal laws, they can build a power plant,” he said. “And as long as they're using the power, they can do whatever they want.”
Utility companies in Oklahoma have submitted public comments to the OCC with general information on the potential for nuclear energy.
Western Farmers Electric Cooperative said its energy mix is heavily reliant on renewables and encourages an “all-of-the-above” approach to generation. It said it supports the OCC’s feasibility study. According to OG&E, the company sought proposals in 2024 for energy generation but did not receive any for nuclear power. It also said it wants to maintain a diverse mix of sources.
PSO stressed in its public comment that nuclear energy is safe and dispatchable. The Corporation Commission can minimize the risk of financial burden on customers by allowing utilities to recover costs early in the process, it said, rather than carry costs forward.
PSO’s parent company, American Electric Power, currently operates a nuclear power plant in Michigan.
Once a nuclear energy site is running, the cost to generate power is relatively low, according to Hank Jenkins-Smith, director of the Institute for Public Policy Research and Analysis. He and Kuhika Gupta, associate director, are part of the OCC’s working group.
Gupta said communities with nuclear energy generation could see collateral financial benefits.
“ Places that have these types of low-cost energy availability, they might get, indirectly, an economic boon from industry that wants to come there,” she said. “Because, from a grid perspective, there's easy availability of low-cost, reliable energy.”
Oklahoma’s past with nuclear energy fuel
Although the state has never generated nuclear energy, it was home to several processing plants for nuclear fuel owned by the Kerr-McGee Corporation. Workplace accidents, and later the death of laboratory technician Karen Silkwood, shaped national conversations about nuclear energy. The company closed its fuel operations in Oklahoma years later.
Matthew Pearce, state historian for the Oklahoma Historical Society, said most residents likely associate nuclear energy with large silos and notable accidents.
“But in the case of Oklahoma, it's much more subtle,” he said. “The Cimarron facility near Crescent, for instance, many people would likely drive by that every day, not knowing the amount of uranium and plutonium that was processed there.”
In the 1970s, PSO proposed a nuclear energy plant near downtown Inola. But safety concerns and community protests brought the plans to a halt. According to The Oklahoman, more than 600 activists were arrested while protesting over the course of two years.
The state should consider past events and consult communities that might host future reactors before deciding whether to welcome the nuclear energy industry, Pearce said. Uranium left from the Crescent facility still contaminates the surrounding groundwater, according to documents obtained by KOCO.
“As a historian, I would advise thinking holistically, thinking historically, thinking about what's happened in the past, what's worked and what hasn't,” he said. “Thinking about who's at the table and who's not, and why that might be the case, and how, potentially, to resolve those issues.”
The study will consider the potential siting of nuclear energy technology, Argenbright said. Since the generated power needs transmission, he said coal plants could potentially be appropriate for future reactors.
Researcher Jenkins-Smith said finding the right locations and understanding residents’ safety concerns will be key.
“When you move from support for nuclear energy broadly to, ‘Should I have one sited nearby,’ the conversation becomes different,” he said. “And so the challenge, particularly in a state like Oklahoma that doesn't have much of a nuclear history, is going to be how those narratives get managed and negotiated.”
The Corporation Commission is accepting public comments until Oct. 10, and plans to hold a public meeting on Jan. 7.
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