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Muskogee City Approves Annexation of Unincorporated Land Housing Polaris Technology Data Center | News

Concerns Rise Over Polaris Data Center’s Future in Muskogee

MUSKOGEE, Okla. – Employees at the Polaris Technology Data Center are growing increasingly anxious about potential job losses following a recent decision by the Muskogee City Council to annex the land on which the facility operates. The council’s decision, made Monday night, comes with a significant financial burden—a proposed three percent surcharge on electricity that could cost Polaris up to $5 million annually.

Dan Chepkauskas, Government Affairs Officer at Polaris, expressed concerns that the added fee was unexpected and could severely impact the company’s operations. “It seemed like a classic bait and switch… It’s the money attached to the annexation that poses a greater threat,” he stated. Polaris, which invested $1 million in Muskogee in early 2024 for data mining and crypto operations, argues that this additional financial strain could hinder their expansion and lead to job cuts.

Kimbra Scott of the Port of Muskogee defended the annexation, emphasizing that it was part of a long-term plan established years ago. “This isn’t something newly conceived just for Polaris,” she remarked, suggesting that the city’s intent is to ensure fairness in utilizing local resources.

Polaris employees, including Jonathan DeMario, expressed their worries during the city council meeting. DeMario highlighted that the financial burden could jeopardize about 80 existing jobs and future expansion plans that could increase employment to 200 high-paying positions.

In response to inquiries, the City of Muskogee issued a statement underscoring its commitment to balanced growth and fairness, asserting that companies benefiting from local infrastructure must contribute to its sustainability.

As the annexation process proceeds, a public hearing will be scheduled to address community concerns and provide further details. FOX23 will update the public on the hearing date.

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