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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
HOUSE BILL 4194 By: Chapman
AS INTRODUCED
An Act relating to data centers; creating the Data
Center Decommissioning Act; providing a definition of
data center; establishing that owners of a data
center shall be responsible for proper
decommissioning; clarifying it shall not be the
responsibility of the state or any political
subdivision to cover costs associated with
decommissioning; providing proper decommissioning
requirements; requiring that decommissioning shall be
completed within twelve months; permitting the
Oklahoma Corporation Commission to take necessary
action to complete decommissioning; requiring owners
of data centers to provide financial assurance;
permitting contracts between a landowner and data
center to include more restrictive decommissioning
requirements; granting the Corporation Commission
rule-making authority; providing for codification;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 821 of Title 17, unless there is
created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Data Center
Decommissioning Act".
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SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 821.1 of Title 17, unless there
is created a duplication in numbering, reads as follows:
As used in this act, the term "data center" shall mean a
facility that is designed to have a load of one hundred (100)
megawatts or more and whose primary purpose is the storage,
management, and processing of digital data via the interconnection
and operation of information technology and network
telecommunications equipment, including all related facilities and
infrastructure for backup electricity generation, power
distribution, environmental control, cooling, and security.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 821.2 of Title 17, unless there
is created a duplication in numbering, reads as follows:
The owner of a data center shall be responsible, at its sole
expense, for the proper decommissioning of the data center upon
abandonment, permanent cessation of operations, bankruptcy,
insolvency, economic infeasibility, destruction by natural disaster,
or the end of the useful life of the data center or its equipment.
Neither the State of Oklahoma nor any political subdivision thereof
shall be responsible for any costs associated with decommissioning,
remediation, site restoration, or environmental cleanup of a data
center.
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SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 821.3 of Title 17, unless there
is created a duplication in numbering, reads as follows:
A. Proper decommissioning of a data center shall include:
1. Removal of all buildings, structures, electrical
substations, backup generators, fuel storage tanks, cabling,
conduit, power distribution systems, cooling equipment,
telecommunications equipment, foundations, concrete pads, and all
other associated facilities and infrastructure to a minimum depth of
thirty (30) inches below grade;
2. Removal and lawful disposal of all hazardous materials,
fuels, coolants, batteries, and electronic waste in compliance with
state and federal law;
3. Grading, reseeding, and restoration of all disturbed land to
substantially the same physical condition that existed prior to the
construction of the data center, excluding roads, unless the
landowner specifically requests in writing that roads be removed and
the land restored; and
4. Implementation of all environmental remediation necessary to
eliminate contamination or pollution caused by data center
operations.
B. 1. Decommissioning shall be completed by the owner within
twelve (12) months after abandonment, closure, destruction, or
permanent cessation of operations.
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2. If the owner fails to complete decommissioning within the
required period, the Oklahoma Corporation Commission may take any
action necessary to complete decommissioning, and the owner shall
remain fully liable for all costs incurred.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 821.4 of Title 17, unless there
is created a duplication in numbering, reads as follows:
A. Prior to commencing construction of any new data center in
the State of Oklahoma, the owner of a data center shall provide
financial assurance in a form acceptable to the Oklahoma Corporation
Commission, which may include:
1. Surety bond;
2. Irrevocable letter of credit;
3. Cash escrow; or
4. Other form approved by the Corporation Commission.
B. The financial assurance shall be in an amount sufficient to
cover the full cost of decommissioning, environmental remediation,
and site restoration.
C. Financial assurance shall be maintained for the life of the
data center and shall not be canceled, reduced, or allowed to lapse
without prior approval of the Commission.
D. Financial assurance required by this section shall:
1. Be noncancelable and nonrevocable in the event of bankruptcy
or insolvency;
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2. Be payable directly to the State of Oklahoma for the sole
purpose of completing decommissioning and remediation; and
3. Not be subject to claims of the owner's creditors or
bankruptcy estate.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 821.5 of Title 17, unless there
is created a duplication in numbering, reads as follows:
A lease, development agreement, or other contract between a
landowner and a data center owner may include decommissioning,
bonding, or remediation provisions that are more restrictive than
those required by this act.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 821.6 of Title 17, unless there
is created a duplication in numbering, reads as follows:
The Oklahoma Corporation Commission shall have rule-making
authority to carry out this act.
SECTION 8. This act shall become effective November 1, 2026.
60-2-15518 MJ 01/03/26