Google Data Centers Get Green Light from Oklahoma Regulators
Oklahoma Gas & Electric Co. (OG&E) has reached a settlement agreement with Google to provide electrical power to three new data centers in the state. The deal, which was approved by the Oklahoma Corporation Commission's Administrative Law Judge, requires Google to pay the full cost of power lines and equipment used specifically for its data centers.
The agreement was the result of several hours of negotiations during a Wednesday hearing, where parties involved had to reach a settlement on major points of contention. The plan for measuring the data centers' effect on other customers underwent multiple revisions before being finalized.
OG&E's regulatory affairs director, Kimber Shoop, said that adding the data centers would result in a rapid increase in demand for electricity, and thus, required careful consideration to ensure customer protections were in place. The utility company will review the impact of Google contracts during future rate cases to determine whether serving the data centers raises or lowers costs for other customers.
The settlement does not guarantee specific savings for customers, but rather establishes a process for measuring the effect after the data centers begin operating and more information becomes available. OG&E must notify the commission and parties within 30 days if any broader power-grid upgrades are caused directly by the Google projects.