PIEDMONT CITY COUNCIL REVIEWS PROJECT OPEN SKY DATA CENTER PROPOSAL

The Piedmont City Council discussed several aspects of the proposed Project Open Sky data center development during its regular meeting Monday, August 24. The council ultimately voted unanimously to table the rezoning application and continue the public hearing and remaining agenda items at a special meeting on September 17 at 6:30 p.m.

Cloverleaf is seeking Planned Unit Development (PUD) rezoning for approximately 633 acres in Piedmont. The project was initially proposed as a 600-megawatt data center facility, with the potential to expand to 1.4 gigawatts. Cloverleaf Chief Development Officer Aaron Bilyeu also told the council that the company has secured an additional 337 acres in Kingfisher County for potential development and plans to move forward with planning for that property simultaneously as an alternative location if the Piedmont rezoning is not approved.

Cloverleaf estimated that a 600-megawatt facility could generate approximately $9 million annually in city gross receipts taxes and $13 million in municipal property taxes, based on a baseline capital investment of $1 billion. The developer also committed to a $10 million community investment, beginning with $1 million upon PUD approval and followed by $9 million tied to development milestones, building permits and the start of construction.

Cloverleaf stated that the facility would use a closed-loop, dry-cooling system rather than evaporative cooling and proposed a contractual limit of 75,000 gallons of municipal water per day. The initial filling of the cooling system is estimated to require approximately 4 million gallons over several months, while normal operations are projected to use 10,000 to 20,000 gallons per day for domestic purposes. Cloverleaf also agreed not to drill private water wells on the property, provided the city guarantees the contracted municipal water supply.

The proposed development includes a 300-megawatt natural gas peaker plant and battery storage to help manage grid demand during peak periods. The final configuration has not been determined and could include one turbine stack reaching up to 100 feet or as many as six smaller turbines with approximately 75-foot stacks. A final electrical service agreement with Cimarron Electric has not been completed, and current revenue projections assume a 2% city gross receipts tax on electricity.

Cloverleaf also requested increasing the nighttime noise limit from 50 decibels to 60 decibels. After questions from city council members, Bilyeu said the project could meet the existing 50-decibel nighttime limit at the property line and that the requirement would not be a deal-breaker. During construction, Cloverleaf said a 60-decibel limit would not be feasible but agreed to restricted work hours and continuous noise monitoring. The developer also committed to repaving local access roads with asphalt before construction to reduce truck noise and vibration.

Other requested changes include reducing the required perimeter berm from 12 feet to 6 feet, supplemented by three rows of evergreen trees and native vegetation, and increasing the permitted building height from 65 feet to 75 feet to accommodate two-story buildings. Cloverleaf also requested modifications to standard commercial parking requirements based on the number of employees expected on site.

City council members opposed eliminating the special-use permitting requirement. The city attorney recommended a Specific Use Permit that would provide the city with ongoing oversight and revocation authority if the developer violates the terms of the PUD. A council member also requested stronger language requiring the project to include funding for emergency services, noting that Piedmont currently does not have a ladder truck capable of reaching the proposed 75-foot buildings. Cloverleaf agreed to the change.

The council also addressed peer-reviewed utility and infrastructure studies that have not yet been provided. The city attorney said the city’s existing IT zoning ordinance requirements remain in effect because the PUD does not specifically waive them. Questions were also raised about performance bonds and future decommissioning. Bilyeu agreed to discuss performance bonds but said decommissioning plans are typically negotiated with the project’s final end user.

Residents raised concerns about water, noise, property impacts, transparency and the city’s review process and asked the council to conduct additional due diligence. One resident reported that an open-records request produced a previously undisclosed NDA form sent by Beltline to the city’s community development manager and also questioned the level of detail in previous meeting minutes.

The council did not approve or deny the rezoning application Monday night. Instead, it directed city staff to compile the council’s concerns, technical questions and requested PUD modifications before the September 17 special meeting at 6:30 p.m.