A pair of data centers are being proposed in Muskogee, Oklahoma.
New York-based private equity firm YZY Capital Holdings LLC has agreed to purchase two plots of land owned by Muskogee City-County Port Authority totaling 136.5 acres, the city announced this week.
The firm plans to invest $100 million to develop two 50MW data centers in Muskogee County, to the south of Tulsa. One data center will be built on a 15-acre tract near the city of Oktaha, and the second will be built on a 126.5-acre tract at John T. Griffin Industrial Park in Muskogee City.
A description on one employee's LinkedIn confirms that the two facilities are "crypto mining operations."
“We are ecstatic with excitement to announce the arrival of 40 new technology jobs to the Muskogee market,” said Mayor Marlon Coleman. “These jobs help us in our efforts to define Muskogee as a potential hub for high-tech, living-wage jobs. Our goal has always been to make Muskogee a place where we can live, work and play, and being selected by YZY as a job site puts us closer to making that goal a reality for our community. We are looking forward to working with them in developing the necessary infrastructure over the next several months to help make them successful as they grow Muskogee with their presence.”
The city said the Oktaha facility is expected to be operational by end of Q1 2022 and will be the first to come online. The Muskogee facility is expected to be online by Q4 2024.
Muskogee Port Director Kimbra Scott said she is “very pleased to partner with YZY in the development of these data centers. This announcement highlights the importance of the Port’s land acquisition efforts in helping to facilitate large capital investment projects such as this.”
The investment is expected to generate approximately $1 million each year in new property tax revenues, which will be shared by Muskogee County, Muskogee County EMS, Muskogee County Health Department, Muskogee Public Library, Indian Capital Technology Center, and the public school district in which the property is located.
“This major investment in the Muskogee and Oktaha communities will be a game-changer for Hilldale and Oktaha Public Schools,” said Rep. Avery Frix. “I’m excited for the future of Muskogee county with this transformational investment. My hats off to the Port of Muskogee for securing this historic investment.”
According to its website, YZY Capital is a privately held real estate services firm. Though details are sparse, one employee bio on LinkedIn says the company has delivered more than 180MW of capacity. Another bio says that the company is the US investment wing of Chinese real estate company Youzhiyou Group, and that it recently began building a crypto mining business in the US (China banned the practice within its borders last year).
YZY said the decision to locate in Muskogee county was based on the “supply of reliable, secure, and low-cost power, labor availability and business-friendly operating environment,” according to Qian Yuan, owner of YZY Capital Holdings.
Earlier this month, the Muskogee City-County Port Authority announced an agreement with blockchain firm Core Scientific to develop a 500MW blockchain & crypto mine data center at the Port of Muskogee John T. Griffin Industrial Park.
The data center will be developed in phases with initial operations to begin in late 2022 and be completed in 2023. The company said its proprietary Minder fleet management software will enable the facility to ‘curtail electricity consumption’ in response to the needs of the local energy grid in order to provide stability.
