Behind the Servers | OEC News

By Tim Ferree, Key Accounts & Advocacy Specialist

Will serving these massive data facilities raise my bill? That’s the question electric consumers are asking as data centers — and their resulting demand for electricity — grow across Oklahoma.

Data centers are becoming more integral to our daily lives, with cloud services, streaming and AI tools driving the surge in local demand. In 2025, Google announced a two-year, $9 billion investment plan to expand data centers in Oklahoma, which are already operating in Stillwater and Pryor. Though data centers and their power demands are gaining more attention now, electric industry leaders have long anticipated the strain they could add to an aging grid. Such challenges lead to understandable questions from OEC members and all consumers.

At OEC, we value transparency and the opportunity to help members better understand every side of these complex challenges related to data center energy demand. We will answer common questions this month, and more in the next, guiding you through these steps one by one. Let’s begin.

THE BIGGER PICTURE

To grasp the dynamic relationship between OEC, our wholesale power provider, Western Farmers Electric Cooperative (WFEC) and the Southwest Power Pool (SPP), imagine a highway system. OEC operates on local roads, delivering electricity to homes and businesses. Those roads connect to larger highways operated by WFEC, which generates power from a diverse mix of sources. All of it feeds into a regional interstate system managed by SPP.

Think of the SPP as the traffic controller for electricity across 14 states. The organization ensures there is always enough power on the system and decides which power plants run at any moment.

Because we are a small part of this larger grid, no single home or business — not even a data center — changes how the whole system operates. We are all drawing from the same shared supply, and SPP plans ahead so the region has what it needs.

That’s the basic reason large facilities don’t automatically raise costs for OEC members. The system is built to handle growth, and WFEC secures the power we need with that larger plan. In addition, the grid’s design includes reserve margins, which help prevent sudden price spikes even during high-demand periods. This engineering approach ensures that fluctuations in electricity needs are managed efficiently, ultimately safeguarding our members’ utility bills and supporting long-term electric bill stability.

For a more detailed explanation of how this system works, check out our article, Power Players at okcoop.org/powerplayersnov23.

AM I GOING TO PAY MORE ON MY ELECTRIC BILL IF OEC SERVES LARGE DATA CENTERS?

The short answer: No.

While the costs of generating and distributing electricity are expected to rise over the next few years, data centers are not solely to blame. Any increase that co-ops and their consumers may experience is driven by overall load growth forecasts across the SPP’s 14-state footprint, which is projected to be 1.7% through 2026, according to the U.S. Energy Information Administration (EIA). To put this into perspective, the previous decade saw an average growth of just 1.2%. This comparison highlights the accelerating pace of demand that influences cost projections across the electric cooperatives in the region.

The growth increases encompass all sectors, including commercial, industrial and residential. Imagine for every three homes currently powered, the grid keeps a fourth in reserve, ready to meet peak demands. This kind of planning, akin to having a backup plan, ensures the system operates smoothly even under stress. This growth, coupled with SPP’s plans to build new generating capacity to serve their highest peak consumption with at least a 36% margin, could ultimately lead to increased costs for all types of consumers.

Data centers are also responsible for funding the infrastructure required to serve their load. When a large facility requires new system upgrades or significant additions to the grid, those costs are not shifted to the rest of the membership.

The National Rural Utilities Cooperative Finance Corporation (CFC) notes that many cooperatives already follow this model by requiring data centers to pay for new infrastructure or the added generation they depend on, protecting existing members from added costs.

On top of that, data centers generate significant revenue without increasing our peak demand. They help cover system costs and support long-term rate stability for all OEC members. Their presence strengthens the cooperative’s financial position rather than burdening it.

DO DATA CENTERS PAY THE SAME RATES AS RESIDENTIAL OR COMMERCIAL MEMBERS?

Not exactly. OEC serves many types of industrial members, each under customized contractual agreements tailored to their operations. While the cooperative does not disclose the details of any member’s account, whether industrial or residential, data centers are billed under a unique rate structure designed specifically for large-load users.

Data centers receive service through an interruptible rate, which requires them to reduce operations during OEC’s monthly system peak. Think of this structure as similar to discounted cell phone plans, where users agree to slower speeds during peak times to pay less. In the same way, data centers use an interruptible rate, meaning they accept certain operational limitations during peak demand periods to benefit from cost savings. When they reduce operations during those critical peak hours, the cooperative saves significant power supply costs. If a data center — or any industrial power user — chooses not to reduce its operations during that time, it pays a substantial penalty.

This structure, which has been in place for all large power users for decades, ensures that their operations do not increase costs for the membership and allows scalable energy systems to thrive without risk to residential members.

THE BOTTOM LINE

Oklahoma is seeing increased interest from data centers, and OEC is prepared to serve these members while protecting the interests of the entire cooperative. Through careful rate design, responsible planning and ongoing collaboration with community partners, we ensure that large load growth supports our system instead of straining it.

As always, we will continue putting our members first every step of the way. If you have questions about data centers or any other cooperative issue, we’re here to help.