Development agreement lays out more details of $800 million data center in east Tulsa
The Partner Tulsa trustees approved the agreement Thursday, marking a significant step forward for Project Anthem. But the deal remains contingent on City Council approval of a financial assistance package. A development and financing assistance agreement has been unanimously approved for a $800 million data center in east Tulsa. The agreement allows the city to receive over $62.5 million for infrastructure in that area. The developer, Project Anthem, will cover all costs on the project site, including approximately $25 million in public infrastructure. The $62-5 million would be used to fund infrastructure in the broader planning area around the Project Anthem site. The project is dependent on approval of a 25-year Tax Incentive District for the 340-acre project site. Once operational, the data center is expected to employ 50 full-time employees.
Published : 4 weeks ago by Kevin Canfield Tulsa World, kevin canfield in
A development and financing assistance agreement approved Thursday for a $800 million data center in far east Tulsa calls for the city to receive in excess of $62.5 million for infrastructure in that area.
The funding was one of several new pieces of information included in the contract unanimously approved by the city's economic development arm, the Tulsa Authority for Economic Opportunity.
The parties to the agreement are the city of Tulsa, TAEO — also known as Partner Tulsa — and the developer.
The actual company behind the project, known as Project Anthem, has yet to be made public, but the legal name of the developer is listed on the agreement as Atmoss LLC. The Delaware-based foreign limited liability company was established in November, according to Oklahoma Secretary of State records.
Offsite construction of the project will begin on or before March 30, 2026, followed by onsite construction and substantial completion of the data center on or before Dec. 31, 2030.
Thursday’s action marks a significant step forward for the project, but it remains contingent on the City Council’s approval of a 25-year Tax Incentive District for the roughly 340-acre project site south and west of the intersection of 11th Street and the Creek Turnpike.
It would be the first commercial project to break ground at Fair Oaks Industrial Park — a 2,000-acre development area at the heart of the city’s efforts to establish a hub for the advanced mobility industry.
Advanced mobility technology refers to such things as drones, batteries for electric vehicles, self-driving vehicles and related industries.
Under the terms of the development agreement, the developer of the project would cover all costs on the project site, including approximately $25 million in public infrastructure.
The $62.5 million-plus would be used to fund infrastructure in the broader planning area around the Project Anthem site.
“This pilot mechanism … a payment in lieu of taxes, effectively, really allows us to participate in the upside of the company's investment,” TAEO Executive Director Kian Kamas told the board. “So not only do they have to make this initial $25 million investment in infrastructure funds, then they have to make the $62.5 million dollars in payments.
“... But then there's also, as they continue to invest in the site, there's a revenue stream that's pegged to their investments in machinery and equipment.
“And I think that's what we found to be so novel is that we've delivered a benefit that really allows them to keep investing in Tulsa via the abatement, but as they make those investments, we get to capture a revenue stream that allows us to invest heavily in infrastructure.”
Under the terms of the development agreement, the developer would begin making the payments in lieu of taxes when the TID is activated, which typically occurs when a project is near completion.
The developer will pay $5 million annually for the first five years the TID is in effect, and $2.5 million annually for the next 15 years, according to the agreement. In addition, the developer will pay 1/10th of 1% of the market value of all personal property on the project site for the life of the TID.
The TID would be in place no more than 25 years, and the new property owner would receive an 85% annual exemption on his property tax bill.
The 15% that would be collected is estimated to raise a total of more than $36 million over the life of the TID for the city of Tulsa, Wagoner County, Catoosa Public Schools and other affected taxing entities, according to the TID project plan.
“I think that's what we found to be so novel, is that we've delivered a benefit that really allows them to keep investing in Tulsa via the abatement, but as they make those investments, we get to capture a revenue stream that allows us to invest heavily in infrastructure,” Kamas said.
During the four-year construction period, the project is expected to generate up to $3.3 billion in economic activity and more than 5,000 direct, indirect and induced jobs, according to planning documents provided to the Tulsa Metropolitan Area Planning Commission.
In the first year of operation, the data center is projected to generate up to $50 million in direct and indirect economic activity.
Once operational, the data center is expected to employ 50 full-time employees.
A data center generally refers to a physical structure that houses a company’s digital data and includes such things as servers, storage drives and network equipment.
Until Thursday, there had been no public records naming the company behind Project Anthem, and the attorney representing the developer has said it is too early in the project to disclose that information.
However, Meta, the parent company of Facebook and Instagram, has recently announced or begun construction of several data centers that fit the general description of Project Anthem.