Plans are underway for a massive artificial intelligence data center near Cheyenne, Wyoming, that will consume more electricity than all the homes in the state combined, with the potential to expand to five times that capacity. Cheyenne Mayor Patrick Collins announced on Monday that the project represents a major shift for the region, calling it “a game changer” for the state’s economy and technology sector. The city has long attracted large-scale data operations thanks to its cool climate, which helps manage server heat, and the availability of low-cost electricity. Microsoft has operated data centers there since 2012, and Meta Platforms is nearing completion on an $800 million facility announced last year.
This new project is a joint venture between Tallgrass, a regional energy infrastructure company, and Crusoe, a developer specializing in AI-focused data centers. Initially, the site will draw 1.8 gigawatts of power—enough to supply energy for roughly 1.8 million homes—with capacity to scale up to 10 gigawatts. For perspective, Wyoming, the least populated state in the country, has about 590,000 residents and exports the majority of the electricity it generates. The enormous scale of the facility means it will rely on dedicated gas-powered generation combined with renewable sources. State officials, including Governor Mark Gordon, praised the project as a major boost for Wyoming’s natural gas industry.
The planned location lies just south of Cheyenne, off U.S. Highway 85 near the Colorado border. While regulatory approvals are still needed, Collins said construction is expected to begin as soon as possible. Questions remain over whether the project is part of OpenAI’s “Stargate” initiative, a nationwide search for massive AI data center locations, but Crusoe has declined to confirm any tenant plans. OpenAI recently opened the first phase of a Crusoe-built data campus in Abilene, Texas, in partnership with Oracle, which already produces around a gigawatt of power. OpenAI has announced further plans to build another 4.5 gigawatts of capacity across the U.S., though Wyoming has not been publicly listed as one of its current focus states.
The scale of these facilities has raised concerns about energy use, grid capacity, and potential increases in utility costs for customers, but proponents argue that renewable energy integration could limit environmental impact. The Cheyenne data center represents one of the largest infrastructure undertakings in the state’s history, further cementing Wyoming as an emerging hub for the expanding AI and cloud computing industries.