Data center being proposed for Coweta

By John Dobberstein, Editor

COWETA — A company that is proposing data center buildouts across North America is planning a similar facility to be located on recently annexed land in Coweta.

A citizen recently told the Broken Arrow Sentinel they received a flyer encouraging residents to attend an “open house” Oct. 28 from 5-7 p.m. at City Hall to learn more about the project scope, timelines, local impact and benefits for “Atlas” — a data center to be located at 16192 State Hwy 51B.

The developer of the proposed data center is Beale Infrastructure, a portfolio company of asset management company Blue Owl. Beale partners with the leading technology companies to develop data centers and infrastructure, “that supports national economic growth.” The end user of the data center hasn’t been disclosed.

Coweta City Manager Julie Casteen told the Sentinel a request for re-zoning for a planning unit development has been submitted. It’s expected the data center would generate 35 “high-quality” jobs in the first phase, and additional phases would add additional undetermined jobs.

Casteen said the city would not pay for any infrastructure, and upgrades needed would be funded by the developer.

Beale is looking at various options for water, and if the city supplies it the company will be required to pay for any infrastructure needed to serve their development, she added. Beale is also working with Public Service Co. of Oklahoma (PSO) on electrical needs, but she noted the property is already served by a high-voltage transmission line. Any additional infrastructure needed will be funded by the developer.

Casteen said developers have a purchase and sale agreement with both the Coweta Industrial Development Authority and a private owner.

According to Wagoner County records, the Coweta Industrial Development Authority sold 40 acres of property to Chicago-based Quartz Mountain Properties, a real estate developer, for $850,000 late last year. Quartz Mountain Properties is the same company that is developing the data center near Owasso.

County records also show a purchase agreement between property owners, Hopping Family Trust, and Quartz Mountain, which occurred in March.  

But Casteen said ownership of the properties will not transfer until all contingencies are met, including the ability to meet all infrastructure needs of the project. “If all needs are met, the developer will complete the purchase-sale agreements and will own all the property needed for the project,” she said.

A spokesperson for Beale said the company was unable to comment on the project at this time but pointed to additional details to be shared at the open house Tuesday.

Beale is the same company that proposed Project Clydesdale, a phased data center campus to be located near Owasso. The initial phase of that project, representing a $700 million investment, was approved by the Tulsa County Board of Commissioners on Sept. 30 after the county said the plan was in compliance with the county’s long-term land use plan. The project was approved with tax incentives included.

The Project Clydesdale campus will be located north of East 76th Street North, east of North Yale Avenue, south of East 86th Street North, and west of North Sheridan Road.

Beale’s website shows it is developing data centers in DeSoto, Kan., and Pima County, Ariz., as well as Tulsa, although Coweta is not mentioned specifically.

The Beale Infrastructure project near Owasso potentially represents billions in private investment and hundreds of high-tech jobs for the region, but residents voiced environmental and other concerns about the development.

Coweta residents hearing rumors about a data center project in recent weeks have already expressed concerns about water and infrastructure demands.

On its website, Beale says it evaluates the “stress and long-term risks” on local water resources to inform facility designs and understand long-term impact. The company says it partners with “local experts and municipalities” to mitigate potential negative impacts on watersheds and aquifers.

Where feasible, Beale says, the company invests in reclaimed water systems and infrastructure to enable the use of non-potable water resources.

Coweta resident Sharon Heymans began posting information about the hearing Wednesday after receiving a flyer about the development in the mail. Heymans is concerned the utility demands for the annexed property, and the development could siphon funds away from other needed projects.

She questioned how the city will support a large development such as at data center. “Is the city of Coweta even equipped to manage a project of this size? If we already had two boil orders in 2025, we need to ask the (city) council their plan to support this huge drain on our limited resources,” Heymans says.

Casteen told KJRH on Oct. 6 it was difficult to speculate about resource issues until plans were shared by developers, “but we wouldn’t do something to put the city residents in danger of not having resources. So anything that comes forward will be closely evaluated.”

Oklahoma hasn’t previously been considered a large market for data centers and infrastructure. But Google recently committed to invest $9 billion to expand cloud and AI infrastructure in the state. Data Centre Dynamics Ltd. recently reported that Cerebras, Damac, and CoreWeave with Core Scientific also announced projects in the region, and Meta is also rumored to be developing a 340-acre campus in the state.