New AI Data Center Planned Near Cheyenne, Wyoming
CHEYENNE, Wyo. — Mayor Patrick Collins recently announced that a significant new artificial intelligence data center is set to be constructed near Cheyenne, which will initially consume as much electricity as all the homes in Wyoming combined. This project, expected to expand to five times its initial size, is considered a major advancement for the area.
Collins described the development as a “game changer,” highlighting Wyoming’s favorable climate for data centers, with its cool weather helping keep temperatures down, alongside an abundance of affordable electricity. The state’s established reputation as an energy producer, particularly in coal, oil, and gas, positions it as a prime location for such facilities.
Since 2012, Cheyenne has hosted several Microsoft data centers, and an $800 million project from Meta Platforms is nearing completion. The new data center will be a collaboration between Tallgrass, a regional energy provider, and Crusoe, a developer specializing in AI data spaces. The facility will start with a power capacity of 1.8 gigawatts but has the potential to scale up to 10 gigawatts. For context, one gigawatt can supply power to approximately one million homes.
Wyoming, known for its low population of around 590,000, produces roughly twelve times more energy than it consumes and exports nearly sixty percent of what it generates. This new data center will have its dedicated energy sources, combining natural gas and renewable energies, which should bolster the state’s gas industry, according to Governor Mark Gordon.
While critics note that data centers are high consumers of energy, there is optimism that these facilities can leverage renewable sources to mitigate environmental impacts. However, residents might face higher utility bills as energy providers plan to accommodate such sizable projects.
The data center will be located a few miles south of Cheyenne off U.S. 85, close to the Colorado border. Mayor Collins expressed confidence that construction could start soon, pending approval from state and local regulators.
In terms of potential partnerships, there is speculation about involvement from OpenAI, known for its popular ChatGPT project. However, a spokesperson from Crusoe did not confirm any agreements regarding this site.
OpenAI has made headlines with its recent efforts in Texas, partnering with Oracle to launch a large data center that is believed to be the biggest of its kind globally. The company continues to explore other sites across the U.S. for future expansions, although Wyoming is not currently on the list.
Overall, this development signifies a promising opportunity for Wyoming, potentially enhancing its role as a leader in energy production while attracting tech investments to the region.
