Hold onto your hats, folks! Cheyenne is set to become the epicenter of a technological revolution with a massive AI data center consuming more electricity than all Wyoming homes combined.
At a Glance
- Cheyenne’s new AI data center will initially use more electricity than all Wyoming homes.
- The project, backed by Tallgrass and Crusoe, can expand to use five times its initial power.
- Wyoming’s energy resources and cool climate make it a prime location for data centers.
- The development positions Cheyenne as a national hub for AI and cloud computing.
Cheyenne’s Energy-Intensive Future
Cheyenne, Wyoming, is about to embark on a journey that will see it transform into a powerhouse of technological advancement. The announcement of a new AI data center, a collaboration between Tallgrass and Crusoe, is set to consume an astonishing 1.8 gigawatts of electricity right out of the gate, with plans to scale up to 10 gigawatts. To put that into perspective, 1 gigawatt can power up to one million homes, yet this single project will dwarf the total residential electricity consumption of Wyoming. The driving force behind this monumental project is the rapid growth in AI and cloud computing, which demands enormous data center capacity and electricity.
Cheyenne to host massive AI data center using more electricity than all Wyoming homes combined https://t.co/4EZNrZ3ksK
— Policy Wire (@policy_wire) July 28, 2025
Cheyenne is no stranger to hosting large data centers. Since 2012, tech giants like Microsoft and Meta have invested heavily in the region. Now, with the AI boom, the town is positioning itself as a national data center hub, leveraging Wyoming’s cheap and abundant energy, favorable climate, and existing infrastructure. But while the economic advantages seem clear, the strain on local resources and the potential environmental impact cannot be ignored.
Impacts on Cheyenne and Beyond
The implications of this project are enormous. In the short term, Cheyenne will experience a surge in construction activity, bringing jobs and economic growth. However, this surge will also strain local infrastructure and utilities, raising concerns about the sustainability of such rapid development. In the long term, the transformation of Cheyenne into a national AI and data center hub could attract further investments and solidify Wyoming’s role in the tech sector. But with this transformation comes a significant increase in regional electricity demand, potentially leading to new energy infrastructure investments and changes in energy policy.
Local residents may celebrate the influx of jobs, but must also brace for potential housing shortages and an increased cost of living. Meanwhile, the energy sector stands to benefit from increased demand and revenue, yet faces the challenge of scaling supply to meet the center’s needs. The environmental impact is another critical concern. The project could significantly affect carbon emissions and land use, depending on the energy sources powering the data center.
Stakeholder Perspectives
There are several key players involved in this ambitious project. Tallgrass and Crusoe are leading the charge, motivated by the opportunity to capitalize on AI’s growing demand for computing power. City and state officials, including Cheyenne’s Mayor Patrick Collins, are eager to see economic growth, job creation, and increased tax revenue. However, existing data center operators like Microsoft and Meta will be watching closely to ensure the region’s infrastructure remains viable.
Experts, such as Dale Steenbergen, President and CEO of Cheyenne’s Chamber of Commerce, highlight the sheer power consumption of AI data centers, which can be ten times more than traditional centers. Wyoming’s advantage lies in its energy surplus and climate, though there are concerns about transmission capabilities and workforce availability. Optimists see this as a transformative opportunity, while critics worry about sustainability and social impacts like housing shortages.
Sources:
Cowboy State Daily – Huge Data Centers
Cowboy State Daily – Open AI Partnership
