A data center company closes on a real estate deal that will estalish a data center in the City of Claremore.

 

The facility will be built at the Claremore Industrial part by Beale Infrastructure as part of an agreement that will see the company pay more than $172 million dollars to local schools and governments over the course of 25 years. The company will pay the money directly to each entity instead of property taxes. Sequoyah Schools will receive $100 million, Oologah-Talala Public Schools will get $26 million and Rogers County will receive $20 million as part of the deal. The deal is part of what is called a Payment In Lieu Of Taxes or PILOT program.

 

The facility is expected to bring in more than $400 million to the area over the next 30 years in electric and sales tax on top of the PILOT payments.

 

Claremore City officials say they have built in safeguards in case the company pulls out of the deal. Those safeguards include an irrevocable letter of credit and a retail electric service agreement requiring financial security for the company’s anticipated electric service obligations, including capacity, usage and transmission commitments.

 

Construction is expected to begin this fall and take between five and seven years to complete.