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Oklahoma

Developer Sues Oklahoma Utility Over Data Center Power

The suit alleges delayed power and an eminent domain threat tied to two data centers, with the utility disputing the claims.

Updated on Nov. 6, 2026 in Data Centers

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Central Southwest Texas Development has sued Public Service Company of Oklahoma, alleging the utility slowed power work for two data centers and threatened eminent domain. AI Illustration. Upload story photo >

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Central Southwest Texas Development (CSW) has sued Public Service Company of Oklahoma (PSO), alleging unfair treatment in securing power for two data center projects. The suit is a legal filing, and the allegations have not been adjudicated.

Why it matters

The dispute shows how utility power commitments and property easements can collide when a single grid operator serves competing data center developers. For Oklahoma, where two of the affected projects are sited in Oologah and Sperry, it raises questions about how quickly the state's utility infrastructure can accommodate large-load customers.

The central figure is a $250 million loss claim tied to Project Waterfall and Project Snowflake, drawn from the developer's own filing. The claim has not been independently verified, and the lawsuit does not establish how the losses were calculated.

The players

Central Southwest Texas Development

A Texas-based developer building data center projects in Oklahoma, which is suing PSO over power access for Project Waterfall and Project Snowflake.

Public Service Company of Oklahoma

The Oklahoma investor-owned electric utility, which allegedly prioritized a competing data center project and disputes the claims against it.

The details

CSW applied to PSO for a Contract Study, a utility assessment confirming whether enough electricity is available for a planned facility. PSO then contracted with a competing developer for Project Clydesdale and suggested CSW negotiate an easement, a legal right to cross private land with infrastructure, across CSW's property. After CSW declined, CSW alleges PSO slowed its work and sent three pre-condemnation letters, the formal notices that begin an eminent domain process to take property for public-utility use.

Timeline

  1. CSW applied to PSO for a Contract Study on power availability; the date was not specified.

  2. PSO contracted with a competitor for Project Clydesdale; the date was not specified.

  3. CSW declined the easement, after which CSW alleges PSO delayed work and sent letters; the date was not specified.

  4. The lawsuit was reported on November 5, 2026.

The Tech Race

Data center developers in Oklahoma are competing for limited utility capacity, and the CSW suit shows that grid access can become a contested resource between rival projects. The outcome may shape how other developers negotiate easements and power commitments with PSO and similar utilities.

Residents and businesses in the affected areas may see changes in local land use and utility planning if the eminent domain process moves forward. The timeline for power delivery to either project has not been announced.

The takeaway

Watch whether PSO files a formal response and whether the pre-condemnation letters progress to formal eminent domain proceedings. Either step would clarify how the utility resolves competing claims on its capacity and property.

Further reading

For broader context on how these facilities are reshaping regional power demand, see Data Centers coverage in Oklahoma.

Source note: This article includes information reported by KTUL.

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