Community activist Kyle Schmidt, a longtime resident of Tulsa, says a lawsuit filed by Texas‑based Central Southwest Texas Development (CSW) offers a rare glimpse into the high‑stakes world of data‑center development. CSW alleges that the Public Service Company of Oklahoma (PSO) gave preferential treatment to a rival developer for a separate project, causing costly delays to CSW’s own data‑center plans.
Background on the disputed projects
CSW is developing two data‑center sites in Oologah, Oklahoma: Project Waterfall and Project Snowflake. To secure the electricity needed for these facilities, CSW applied for a Contract Study with PSO, a standard step to confirm power availability.
According to the lawsuit, while CSW’s application was pending, PSO entered into a contract with a competitor to supply power for a different venture, Project Clydesdale. PSO then suggested that CSW negotiate an easement across the competitor’s property to accommodate Project Clydesdale, a request CSW declined.
Alleged misconduct by PSO
CSW claims that after refusing the easement, PSO began “dragging its feet,” creating delays that jeopardized the Texas developer’s $250 million investment. The suit further alleges that PSO sent three pre‑condemnation letters to CSW’s land for Project Snowflake, despite having already committed to providing power for Project Clydesdale without securing the necessary easements.
“For PSO to send pre‑condemnation notices and start eminent‑domain proceedings to take somebody’s land in order to provide power to a private corporation is alarming,” Schmidt said. “It looks like the deck is stacked against the little guy.”
Responses from the parties
PSO responded to the filing, stating, “We strongly disagree with these allegations and intend to respond through the appropriate legal process.” The company declined to provide further comment.
Attempts to reach CSW’s legal counsel for comment were unsuccessful at the time of publication.
Implications for the region
The lawsuit highlights the complex interplay between utility providers, developers, and local communities in a region that is rapidly becoming a hub for data‑center construction. Oklahoma’s relatively low electricity rates and abundant land have attracted numerous tech firms, but the case underscores the need for transparent and equitable utility practices.
Schmidt, who has been active in local civic matters, said he will continue to monitor the case closely. “These battles aren’t just happening at town halls; they’re being fought in boardrooms and courtrooms,” he added.
What’s next?
The case is set to proceed through the Oklahoma state courts, where a judge will determine whether PSO’s actions violated contractual obligations or state utility regulations. Both developers and local stakeholders are watching closely, as the outcome could influence future utility agreements and land‑use negotiations for data‑center projects across the state.
Original reporting: KTUL 8 (Sinclair) – local — read the source article.
