Lambda plans Oklahoma data center expected to yield $500 million in taxes

Jobs, taxes and the site

According to Lambda, the project is expected to create up to 1,000 construction jobs and up to 100 permanent positions. The facility will sit in the south section of the industrial park, within the Chouteau-Mazie Public School District tax boundary.

Local officials say the tax revenue is meant for public needs. Chouteau Mayor Brenda Cunningham said the estimated $500 million will go toward supporting schools, public services and local priorities. Josh Gwartney, superintendent of Chouteau-Mazie Public School, said the revenue would allow investment in better facilities, competitive teacher salaries, advanced programs and more career and technical education opportunities.

MidAmerica selected Lambda from a range of potential partners. David Stewart, CEO of MidAmerica Industrial Park, described a process the park calls a reverse RFP, which started with the strengths of the site and looked for a developer whose plans would deliver lasting value to the region.

Energy, water and ratepayer commitments

Lambda says it will comply with Oklahoma's Data Center Customer Ratepayer Protection Act and take full responsibility for the resources and infrastructure needed to run the facility, including paying 100 percent of its energy costs. The company has also signed the White House Ratepayer Protection Pledge. It is working to design the project as a more flexible grid customer, able to shift or reduce certain computing loads during periods of peak demand.

On water, the company says the facility will use closed-loop cooling technology that, in its words, dramatically reduces water use compared with traditional data center cooling. The project is being built at the existing industrial park, with infrastructure designed to minimize impacts on surrounding residential areas.

Dan Sullivan, CEO of Grand River Dam Authority (GRDA), said Lambda will fund the upfront infrastructure costs required to serve the project, so those expenses are not passed on to other GRDA customers. Governor Kevin Stitt also said the energy costs would not be passed along to residential customers.

Partners and next steps

Cloverleaf Infrastructure was selected by GRDA and MidAmerica to ready the Mayes County site for development by Lambda. Aaron Bilyeu, Chief Development Officer at Cloverleaf, said the company expects the project to create significant construction jobs and long-term employment.

Lambda CEO Michel Combes said data centers can create lasting economic opportunities when developed responsibly. Co-Founder and CTO Stephen Balaban said the company has been meeting with local leaders to understand their priorities.

In the coming weeks, Lambda and MidAmerica will continue meeting with local leaders and residents to gather input on community investment. The companies say more information about the project timeline and expected economic impact will be shared as planning progresses. The announcement does not give a construction schedule or the facility's size or power capacity.

For Mayes County, the plan promises a sizable addition to the local tax base, with the commitments on energy costs and water use aimed at addressing common community concerns about large data centers. Those figures are estimates from Lambda and local officials, based on current tax rates.