DEQ Information on Data Centers

1.  What role does DEQ play in determining where a data center can go?

DEQ does not regulate land-use decisions or determine where data centers may locate. However, once a site is selected, the facility must comply with all applicable environmental requirements administered by DEQ.

2.  Can DEQ deny a permit?

DEQ evaluates permit applications based on applicable statutory and regulatory requirements. Permits may be issued, denied, or require modification depending on whether the applicant demonstrates compliance with those established requirements.

3.  What role does DEQ play in relation to water for data centers?

a)  Water Quality:  Water is one of Oklahoma’s most valuable resources. DEQ’s authority for this is to ensure data centers comply with the requirements of the federal and state Clean Water Acts. In relation to data centers, this primarily comes in the form of regulating discharges from a data center to ensure compliance with state and federal requirements.

b)  Water Quantity: The authority to regulate the quantity of water a data center consumes is regulated by the Oklahoma Water Resources Board. Data centers may be required to obtain permits from OWRB for water rights or may contract with a local water system which has existing water rights that were previously permitted through OWRB and can meet demand.

4. How do data centers use water?

a)  Some data centers use a large amount of water to cool equipment; however, there are a few different methods of cooling with varying degrees of water consumption.

1)   Recirculation and Reuse: In many cooling systems, the water is recirculated. After absorbing heat from the data center, the warm water is cooled down again through various methods (like cooling towers or heat exchangers) and then reused.

2)   Discharge: Some cooling systems discharge used water as industrial wastewater, usually into a nearby wastewater treatment facility or a body of water like a river or lake. This discharge is regulated in accordance with state and federal laws to protect the designated beneficial uses of the receiving waterbody.

3)   Evaporative Cooling: In systems like cooling towers, a portion of the water evaporates and is consumed while cooling the remaining water. This evaporative process is efficient for cooling but results in water loss.

b)  If a data center develops a water well intended to serve water to on-site personnel, after obtaining the appropriate water rights permit(s) from OWRB, DEQ does have authority over the construction of that well and the quality of the water that is served to people who have access to that well.

5.  Does DEQ regulate how much water a data center can use?

No. Water rights and water use are regulated by the Oklahoma Water Resources Board.

6.  What role does DEQ play in power generation for these sites?

The Oklahoma Corporation Commission regulates electric rates and any fluctuations of those rates. Utilities that generate power must comply with DEQ regulations.  Similarly, data centers that install behind-the-meter power generation equipment may be subject to air permitting requirements that are implemented by DEQ depending on the type, size, and potential emissions of the equipment. Larger natural gas-fired generation units may require major source permits such as Prevention of Significant Deterioration (PSD) permits and Title V operating permits.

7.  Does DEQ regulate electric rates?

No. Electric utility rates are regulated by the Oklahoma Corporation Commission.

8.  Can DEQ review on-site power generation/ power behind-the-meter project?

a)  Yes. Depending on the size and type of equipment, air quality permits may be required.

b)  The DEQ permitting requirements are the same for all natural gas turbines, including behind-the-meter. The appropriate construction and operating permits must be obtained for any natural gas turbine constructed in Oklahoma.

9.  Can I see permit applications?

Yes. Permit records issued or in review by DEQ pertaining to data centers, are available in the tab below: issued/pending permits.