Muskogee County

PROJECT PURPOSE

In February 2022, YZY Capital Holdings LLC agreed to purchased 136.5 acres of land owned by Muskogee City-County Port Authority for $100 million, which includes a 15-acre tract near Oktaha for a 50 MW data center. Port officials said the Oktaha data center is expected to be operational by March and will be built adjacent to OG&E's newest substation. Instrumental to the future development of this data center for Oktaha is improved waterline and infrastructure to meet the water-cooling demands of this data center. The Oktaha infrastructure is nearly a century old and requires extensive replacement and remediation. YZY officials said data center employees would earn an average annual salary of about $60,000. Each center is expected to employ about 20 people once the facilities are fully operational. This would mean $1.2 million in salary just for the Oktaha data center and would impact the Oktaha economy. State Rep. Avery Frix, R-Muskogee, described the investment as a "game-changer" for Hilldale and Oktaha Public Schools. YZY Capital Holdings is a private investment firm that identifies and pursues high-return projects in emerging sectors. Its team has experience with foreign trade, automotive marketing and after-sales services, industrial real estate, logistics and warehousing services.

EVIDENCE

The waterlines in Oktaha are approximately a century old. The economic investment of YZY Capital Holdings for a 50 MW data center in Oktaha demands an upgrade of infrastructure to meet cooling needs. This investment from YZY would bring approximately $1.2 million annually in salary to the Town of Oktaha and the County of Muskogee.

POPULATION DESCRIPTION

The Town of Oktaha is a central location in Muskogee County because of its K-12 school that draws some 350 students from rural portions of Muskogee County. The Town of Oktaha has a poverty rate of 19% and is USDA grant eligible due to its economic and demographic composition. Muskogee County (67,000) has been designated as a StrikeZone by the USDA because of its high poverty rate (21%) and its many economic disparities and challenges. Muskogee is a poor, diverse and rural population that has been disproportionately impacted by the pandemic due to restricted access to health services and socioeconomic challenges resulting from inadequate infrastructure, limited economic development opportunities, inconsistent broadband access, and access to employment. In addition to chronic poverty, other vulnerable populations include the elderly, children, and minorities. A study by the National Academy of Sciences of the United States of America released in Jan. 2021 revealed that the effects of the COVID-19 pandemic on rural populations have been severe, with significant negative impacts on unemployment, overall life satisfaction, mental health, and economic outlook. Often rural residents have fewer individual resources, access to services and, on average, are poorer and less educated.

PERFORMANCE MEASURING

Project performance for the replacement and repair of waterlines for the Town of Oktaha will be measured by the completion of the project according to schedule and within the established budget.

ONGOING INVESTMENT AMOUNT

$

ONGOING INVESTMENT DESCRIPTION

None

ONGOING INVESTMENT REQUIRED

One-time project will not need continued funding