Data Center Groundwater Protection Act Chamber: Senate · Signed by Gov. Stitt, May 20, 2026

What the law does

SB 259 governs how large-load data centers use Oklahoma groundwater. Its final language does four things: it defines penalties for failing to report groundwater usage; it requires data centers to use closed-loop cooling systems in order to qualify for a groundwater usage permit; it protects users who draw less than their permitted amount from having their allocation reduced; and it creates a complaint process through the Oklahoma Water Resources Board.

Who it applies to

Data centers that seek or hold a groundwater usage permit in Oklahoma. The closed-loop cooling requirement is the gating condition: a data center that wants a groundwater permit must cool that way to qualify.

Effective date

Signed into law May 20, 2026. Compliance obligations attach to the groundwater permitting process administered by the Oklahoma Water Resources Board.

What a data center must do now

  • Use closed-loop cooling as a condition of qualifying for a groundwater usage permit.
  • Report groundwater usage as required; failure to report carries defined penalties under the law.
  • Expect a complaint channel. Affected parties can raise concerns through the Oklahoma Water Resources Board, so operators should assume their usage and reporting can be contested.

Users who draw less than their permitted allocation are protected from having that allocation reduced, which removes the incentive to over-draw simply to preserve a permit.

Context

SB 259 is the water-side companion to HB 2992’s cost floor: where HB 2992 meters the grid cost of a large load, SB 259 meters its water. It is of direct relevance to community-owned geothermal procurement, because enhanced geothermal does not consume the cooling-tower water cycle that most hyperscale data centers rely on, and so is not bound by the same closed-loop constraint. The Inference covers SB 259 in Issue #15 (Water on the Meter).

Questions: david@humanityandai.com