AI Cloud Company Lambda Plans Data Center in Mayes County, Oklahoma, Projected to Generate $500 Million in Tax Revenue

Cloud computing company Lambda has announced plans to build a data center in Mayes County, Oklahoma, a project the company says could deliver an estimated $500 million in tax revenue to the county over the next decade. The facility will be located in the southern section of the MidAmerica Industrial Park, within the Chouteau-Mazie Public Schools tax boundary, according to statements from Lambda and MidAmerica Industrial Park.

The project is expected to create up to 1,000 construction jobs and approximately 100 permanent positions once operational. However, Lambda did not disclose a construction start date, a completion timeline or the total project cost. The company noted that its tax revenue projection is based on current rates.

"This project will bring an estimated $500 million in tax revenue to our county over the next decade," said Chouteau Mayor Brenda Cunningham, underscoring the significant fiscal impact the development is expected to have on the local community.

Lambda said it will employ closed-loop cooling technology at the facility to recycle water and reduce overall water consumption — a design choice that reflects growing industry scrutiny over the environmental footprint of data centers, particularly in regions where water resources are closely managed.

The company also committed to paying its full electricity costs and funding the infrastructure required to serve the facility, rather than passing those expenses on to other customers of the Grand River Dam Authority. "Lambda will fund the upfront infrastructure costs required to serve the project, ensuring those expenses are not passed on to other GRDA customers," said GRDA CEO Dan Sullivan.

Cloverleaf Infrastructure has been selected by GRDA and MidAmerica to prepare the site for Lambda's development. Lambda and MidAmerica said they will continue meeting with local leaders and residents in the coming weeks as the project moves forward.

The announcement adds to a growing wave of data center investments across the United States, driven in large part by demand for AI and cloud computing capacity. As hyperscalers and AI-focused cloud providers race to expand their infrastructure footprints, communities and utility authorities are increasingly weighing the economic benefits of such projects against their demands on power grids, water supplies and local infrastructure. Lambda's commitment to cover upfront infrastructure costs and electricity expenses could serve as a template for how data center developers negotiate with utility providers and municipalities in an era of rising energy costs and grid constraints.