Developer Sues PSO Over Data Center Power Access

Central Southwest Texas Development alleges Public Service Company of Oklahoma treated its data center projects unfairly, including through eminent domain letters.

Updated on Nov. 6, 2026 in Data Centers

Flat-color editorial illustration of a lone transmission tower on red prairie under a pale sky, evoking utility power access and land disputes. — Central Southwest Texas Development sued Public Service Company of Oklahoma for $250 million, alleging PSO delayed power access and sent eminent domain letters after an easement request was declined. AI Illustration. Upload story photo >

Live Poll

Do you trust local utilities to treat residents fairly when big companies seek power?

Central Southwest Texas Development has sued Public Service Company of Oklahoma (PSO), claiming $250 million in losses across two data center projects. The developer alleges PSO delayed its power access after it declined an easement request, and that PSO sent pre-condemnation letters for its property.

Why it matters

The suit raises questions about how Oklahoma utilities allocate electricity to large data center developers and whether eminent domain is being used to resolve power-access disputes. The outcome could affect how residents and businesses in the state view utility priorities as data center demand grows.

The claim rests on the developer's own loss estimate of $250 million for two projects and on three pre-condemnation letters PSO sent for the Project Snowflake property. The utility has not yet responded in court, and the allegations remain untested.

The players

Public Service Company of Oklahoma (PSO)

PSO is an electric utility serving parts of Oklahoma and a subsidiary of American Electric Power.

Central Southwest Texas Development (CSW)

CSW is a Texas-based developer pursuing data center projects in Oklahoma, including Project Waterfall and Project Snowflake.

The details

The developer says it applied to PSO for a Contract Study to confirm electricity availability, after which PSO contracted with a competitor for Project Clydesdale and suggested an easement across the developer's property. When the developer declined the easement, the lawsuit alleges PSO slowed its work and sent pre-condemnation letters to begin the eminent domain process.

The developer's Contract Study request, PSO's contract with a competitor, and the easement dispute were reported without specific dates.
The lawsuit was reported in news coverage dated November 5, 2026.

Utilities
Nov. 4
Oklahoma Regulators Delay PSO Rate Decision
Trucks
Nov. 5
Oklahoma Turnpikes Set Toll Increases
Elections
Nov. 4
Republicans Win Key Oklahoma Senate Seats

Big Picture

Data center developers across Oklahoma are competing for limited utility capacity, and this lawsuit tests how far a utility can go in using eminent domain to manage that competition. The case shows how easement disputes can stall projects that depend on guaranteed power.

Oklahoma residents served by PSO could see utility planning and rate decisions shaped by how large data center loads are approved and connected. Businesses and landowners near proposed projects may face easement requests or condemnation letters during utility expansions.

The takeaway

Landowners and communities should watch how utilities handle easements and condemnation for data center projects, since those decisions can affect property rights and power planning. Readers can follow the case's court filings to see how the allegations are resolved.