Wyoming Data Center Developers Say Advanced Cooling Tech Will Limit Water Use
Why It Matters
Wyoming is positioned at the center of a massive national buildout of artificial intelligence infrastructure, with several major technology companies eyeing the state for large-scale computing campuses. As that investment grows, so does scrutiny over how much water and electricity those facilities will consume — resources that are finite and vital across the Mountain West.
What Happened
Representatives from data center companies, along with Cheyenne Mayor Patrick Collins, appeared before the Legislature’s Select Water Committee to address mounting concerns about the industry’s impact on Wyoming’s water supply. The committee pressed officials from Microsoft and Prometheus Hyperscale, among others, on what has become a central anxiety in communities hosting or preparing to host large computing facilities.
Prometheus Hyperscale founder and CEO Trenton Thornock told the panel that the sheer scale of modern data centers has pushed the industry toward cooling technologies that do not rely on continuously evaporating large quantities of water. “It just so happens that [Prometheus Hyperscale’s technology] doesn’t consume water on a continuous basis,” Thornock said. The company uses closed-loop systems filled with a propylene glycol and water mixture that requires replenishment only once every six years.
Mayor Collins defended Cheyenne’s approach, testifying that the city has worked proactively with state officials and the local utility to establish a separate electric tariff for data centers — one designed to shield ordinary ratepayers from cost increases. He said the industry has created hundreds of well-paying jobs without placing a visible strain on city services or the water system.
By the Numbers
- Cheyenne currently hosts 13 large data centers, including a National Center for Atmospheric Research supercomputer facility.
- The existing fleet of data centers in Cheyenne uses approximately 200 acre-feet of water annually — roughly 1.48% of all water consumed in the city.
- Collins estimated all planned data centers combined would use around 400 acre-feet per year, or about 3% of current city water usage and 1.8% of the city’s 22,000 acre-feet of available annual supply.
- Global investment in AI infrastructure is estimated at $756 billion this year, according to Goldman Sachs, with projections reaching $1.6 trillion by 2031.
- Microsoft, which opened its first Cheyenne facility in 2012, now operates 11 data centers in the area and has plans for three additional campuses.
Concerns Remain
Not everyone was satisfied. Wyoming Outdoor Council Government Relations Manager Auna Kaufmann urged lawmakers to proceed carefully, noting that smaller municipalities may lack the staff and technical capacity to independently evaluate water and power impacts. “We appreciate that the project developers coming in now are operating in good faith,” Kaufmann said, “but not all of our municipalities have the resources to evaluate those impacts.”
Kaufmann called on the state to establish stronger regulatory frameworks that would protect communities statewide — not just larger cities like Cheyenne that have the resources to negotiate favorable terms. The concern extends beyond cooling water to the enormous volumes of new electrical generation the industry will require, an impact that is harder to quantify and could ripple across Wyoming’s grid and ratepayer base. Rocky Mountain Power has already sought a $71 million rate increase in Wyoming, and further strain from data center demand could intensify pressure on residential customers.
Residents at the committee meeting echoed those worries, citing light pollution, rapid annexation of surrounding land, and unchecked growth as additional friction points. Collins acknowledged the concerns but maintained they are manageable. “Our biggest conversation is about water,” he said, adding that no concern is insurmountable if companies commit to responsible practices. “I want you to know that our expectations of a company will be to do no harm when they come into our community.”
Zoom Out
The scale of investment driving the data center boom is genuinely historic. Analysts compare the current AI infrastructure buildout to the construction of the transcontinental railroad or the interstate highway system in terms of its long-term economic significance. Communities across the country are grappling with the same tensions Wyoming faces, with some local governments in other states already weighing moratoriums on new data center permits until greater transparency is achieved. OpenAI, Meta, and Crusoe are also reported to have plans in the Cheyenne region, with speculation extending to sites from Evanston to Casper.
What’s Next
The Legislature’s Select Water Committee is expected to continue reviewing the issue as development proposals move forward. Advocates for stronger state oversight are pushing for a regulatory framework to be established before the pace of construction outstrips local governments’ ability to respond. Whether the Legislature acts during a future session or leaves oversight to individual municipalities remains an open question — one that Wyoming communities will be watching closely as investment decisions accelerate.
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