Stillwater Welcomes Google: Tech Giant to Build Data Center Campus

Regular readers of The Stillwegian won’t be surprised to learn that Google is, in fact, the technology company behind Kipper LLC.

In our members-only newsletter, I speculated on clues that pointed to Google as the likely Fortune 100 company. In January, I reported Project Rohan as the code name and how it could relate to Stillwater and cowboys to the "horse lords" in J.R.R. Tolkien's Lord of the Rings novels.

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Google has been revealed as the Fortune 100 company that acquired land near Perkins and Richmond Roads in Stillwater, Oklahoma, with plans to develop a data center campus that could become one of the largest economic development projects in Oklahoma history.

"Google choosing Stillwater is a testament to the strength of our economy, our workforce, and our commitment to community investment," Mayor Will Joyce said in a press release. "This project is a tremendous collaborative effort among the City, our economic development partners at the Stillwater Chamber of Commerce and several local stakeholders. Together, we look forward to welcoming Google to the Stillwater community."

All taxing local jurisdictions approved a 25-year tax incentive agreement for the project, which had previously been referred to under the code name "Project Rohan" and linked to a subsidiary called Kipper LLC.

The agreement provides a property tax exemption for up to six data centers, each requiring $500 million in private investment, bringing the potential total investment to $3 billion.

In exchange, Google will make annual payments in lieu of taxes (PILOTs) to local taxing entities, including Stillwater Public Schools, Meridian Technology Center, Payne County, and the Payne County Health Department.

Public school budget to receive additional funding

Stillwater Public Schools stands to benefit significantly, receiving $624,023 annually per data center, with payments increasing by 1% each year. Over the 25-year agreement, this could total more than $17.6 million for the first phase alone.

Stillwater City Manager, Brady Moore, fields questions from Payne County Commissioners and the County Clerk about the Stillwater Data Center Economic Development Project Plan Jan. 21, 2025. – Photo by Chris Peters

During the Jan. 21, 2025, Payne County Board of Commissioners meeting, Stillwater City Manager Brady Moore emphasizes that the city negotiated favorable terms compared to similar projects elsewhere.

"We looked at other projects around the state and wanted to make sure Stillwater was getting the best, not just around the state, [but] around the nation," Moore said. "PILOT payments go directly to the school's general fund and does not impact their State funding formula."

The total PILOT payout for the first two phases of the project is projected to reach $58.2 million through 2057, distributed among the various taxing entities.

Payne County Commissioner Rhonda Markum, who cast the sole dissenting vote, expressed concerns about the lengthy tax deferment.

"I have several constituents that are not in agreement with the 25-year tax deferment," Markum said. "They're really not in agreement with the data center either, but they're not for the 25-year tax deferment."

County Commissioner Seth Condley, who motioned to approve the agreement, notes that his background as a former educator and current soccer coach at Stillwater Public Schools influenced his decision to support the project.

The agreement also includes plans for road improvements to Richmond Road between West Perkins Road and North Jardot Road to meet the increased demands of the project. These upgrades could benefit local facilities such as Stillwater Public Schools' transportation center (bus barn), which is set to relocate to Richmond Road.

The project area for the Google data center campus in Stillwater, Oklahoma. The previously state owned property was primarily used for grazing and crop leases.

Local electric rates could decrease

City officials suggest the data center could potentially lower electricity rates for Stillwater residents. Loren Smith, Stillwater's Electric Utility Director, explained.

"Typically, a high load factor load like this, which means that it's pulling about 90% of its peak capacity at all times, the more kilowatt hours you sell, it typically drives down the cost of energy," Smith said at the County Commissioner meeting.

Stillwater voters previously approved an agreement in the Nov. 5, 2024, general election that permitted Oklahoma Gas & Electric to supply high-voltage electricity for the project, alleviating the burden on Stillwater's local electric utility.

The agreement also encourages Google to commit to carbon-free energy sources when possible for the project, aligning with the company's sustainability goals.

City parks designated for betterment payments

The project is also expected to provide a significant boost to Stillwater parks through Community Betterment Payments. These payments, amounting to $7.7 million over 25 years for the first two phases, will be combined with funds received from the 3% OG&E franchise fee to target projects in public parks, infrastructure, and economic development.

The first Community Betterment Payment of $132,432 could be utilized to renovate Myers Park, which recently received a $17,500 donation from the Grand River Dam Authority to assist in funding new playground equipment.

The Google data center in Mayes County is adorned with a mural bringing art to an industrial setting. See details at Google's Data Center Mural Project website – Photo by Google

Google, not new to Oklahoma

Google already has a presence in Oklahoma, operating a massive data center complex in Mayes County near Pryor since 2007. According to Google, they have invested over $3 million in local schools and nonprofits in Mayes County since 2011.

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Project timelines

City leaders expect Google to begin construction this year, with the initial phase taking approximately two years to complete. The agreement stipulates that the company must commence construction on the final phase within the next 10 years.

"City administration and staff will continue to work closely with Google throughout the development phase. We look forward to the successful implementation of the project and the positive economic impact they will have on our community," City Manager Brady Moore said in the press release.

The project represents a collaborative effort among numerous local partners, including Stillwater Public Schools, Meridian Technology Center, Payne County Commissioners, Payne County Health Department, OG&E, Stillwater Chamber of Commerce, Visit Stillwater, Oklahoma State University, City of Stillwater, and the State of Oklahoma.

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