Why It Matters
Wyoming faces a massive expansion in computing infrastructure as tech giants eye the state for data center development. Two companies alone — Microsoft and Prometheus Hyperscale — plan facilities that could consume more than twice Wyoming’s current electricity output. The buildout will test the state’s ability to generate new power while managing water resources in an arid region where competing demands already strain supply.
What Happened
State lawmakers recently questioned executives from Prometheus Hyperscale and Microsoft, along with Cheyenne Mayor Patrick Collins, about the scale and resource requirements of planned data centers. The Legislature’s Select Water Committee heard testimony that advanced cooling technology will keep water consumption far below initial expectations, even as electrical demand soars.
Cheyenne currently hosts 13 large computing facilities, including the National Center for Atmospheric Research supercomputer. Microsoft opened its first center there in 2012 and now operates 11 facilities, with three additional campuses in development. OpenAI, Meta, and Crusoe have also announced Wyoming projects, with sites under consideration from Evanston to Casper.
Industry representatives told lawmakers that modern cooling systems rely on closed-loop mixtures of propylene glycol and water that require refilling only once every six years. Direct-chip and geothermal cooling methods eliminate the need for continuous water consumption that characterized older data center designs.
By the Numbers
- Cheyenne’s existing data centers consume approximately 200 acre-feet of water annually, representing 1.48% of the city’s total water use
- All planned data centers combined are projected to use about 400 acre-feet per year — roughly 3% of Cheyenne’s current consumption and 1.8% of the city’s 22,000 acre-feet annual allocation
- National investment in artificial intelligence infrastructure reached $756 billion in 2025, with projections climbing to $1.6 trillion by 2031
- One developer claims new closed-loop systems will require the same water volume as eight single-family homes per facility
- Microsoft and Prometheus Hyperscale alone could require more electricity than double Wyoming’s existing consumption
Zoom Out
The data center expansion mirrors historical infrastructure buildouts like railroads and the interstate highway system. Goldman Sachs estimates current AI-related construction spending equals roughly 22% of annual federal government expenditures. Wyoming competes with other western states for this development, offering tax advantages and proximity to renewable energy sources.
Some municipalities nationwide have imposed moratoriums on new data center construction until developers provide greater transparency about resource consumption. Cheyenne has taken a different approach, creating separate electric tariffs that isolate data center costs from residential ratepayers and establishing zoning requirements for light and noise pollution.
Mayor Collins emphasized economic benefits including hundreds of high-paying jobs without corresponding strain on city services. The facilities generate substantial tax revenue while requiring minimal municipal support compared to residential development.
What’s Next
Wyoming officials will continue evaluating power generation options to meet projected demand from computing facilities. The Legislature’s water committee is expected to monitor consumption data as new centers come online to verify industry claims about efficient cooling technology. Local governments across the state will likely adopt similar planning frameworks as developers pursue projects beyond Cheyenne.
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