Data Centers

Last updated 06/03/2026

Data Centers in Cheyenne: Facts, Impacts & Public Information

At Cheyenne LEADS, our mission is to position Cheyenne and Laramie County as a location of choice for new and expanding businesses. As we obtain additional information we will update the page to be the source of accurate information pertaining to Data Centers in Cheyenne and Laramie County. We are constantly working with the companies themselves, the city and county to maintain the accuracy of the information on this page.

This page aims to compile the information from various local sources to provide transparency and available information surrounding local data centers. This page is not intended to persuade residents to support or oppose data centers. It is intended to provide a single place where residents can find information, source documents, local impact data, and answers to common questions. Where information is unknown, incomplete, estimated, or dependent on future approvals, we will say so clearly.

Disclaimer

Cheyenne LEADS is committed to making factual information available as clearly and promptly as possible. Because some data may change, be incomplete, or still be unavailable, this page includes source links, release dates, and update dates wherever possible.

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How Cheyenne LEADS defines “a data center”

A data center is a physical, centralized facility used to house, store, and manage critical IT infrastructure, including computer servers, data storage drives, and networking equipment.

Data centers vary by company, size, and purpose. There can be multiple “data centers” within a building or on a site. However, for sake of simplicity, Cheyenne LEADS defines a data center as a “location” within Cheyenne and Laramie County.

Current Number of Data Centers in Cheyenne/Laramie County

As of 06/01/2026

Data Centers: What They Are & What They Do

Data centers are buildings that house computer servers, data storage systems, networking equipment, power systems, cooling systems, backup equipment, and security infrastructure. They support everyday digital services such as email, video streaming, cloud storage, online banking, healthcare data, business software, cybersecurity, artificial intelligence tools, and data backup.

In simple terms, whenever someone sends an email, saves a photo to the cloud, streams a movie, asks an AI chatbot a question, or uses a business software platform, that information is processed and/or stored in a data center somewhere.

National Context

The United States has thousands of data centers, and estimates vary by source and counting method. Pew Research Center reported that the U.S. had more than 3,000 operational data centers and more than 1,500 data centers in various stages of development as of February 2026, based on its analysis of Data Center Map data. A separate Pew analysis using October 2025 data said the U.S. had more than 4,000 data centers, including both operational sites and projects under development.

Data centers are handled different in every state. The State of Wyoming has created guard rails that protect the communities these data centers will be located near.

Local Context: Why Data Centers are Choosing Cheyenne

Data centers choose Cheyenne for its unique combination of cool climate, abundant energy, favorable tax laws, geologic and geographic stability.

Ideal Climate: Cheyenne’s high-elevation, cool climate allows facilities to use outside air for cooling most of the year. This slashes energy and water consumption and lowers operating costs.

Energy Access & Cost: As a major energy producer, Wyoming offers abundant electricity, and has established tariffs that ensure large power users pay for their own infrastructure, protecting local ratepayers.

Fiber Connectivity: Cheyenne sits on a major transcontinental fiber optic “internet superhighway,” ensuring excellent latency and redundant connectivity.

Low Natural Disaster Risk: The region faces a negligible risk of earthquakes, tornadoes, hurricanes, or floods, making it highly secure for mission-critical operations

“Cheyenne stood out as an outstanding location for Meta to call home for a number of reasons. It provides good access to infrastructure and energy, it has a strong pool of talent, and we have found a great set of community partners that have helped us move this project forward.“

Meta

Cheyenne Data Center Announcement 2024
“We built our first data center in Cheyenne back in 2012, more than a decade ago. At the time, we were really attracted by the city’s high-skilled workforce, its infrastructure and its real, thriving energy industry. I think today, the investment that we’re making is really a commitment to continued growth in Cheyenne for those same reasons. They continue to be true.”

Microsoft

Cheyenne Data Center Expansion Announcement 2026

Local Data Center Impacts

Power

Thanks to Black Hills Energy’s Large Power Contract Service Tariff, any and all data centers that fall into the Black Hills Energy service area pay for 100% of costs. This agreement mitigates the risk of price increases by deferring all costs to the incoming data centers.

  • Data centers pay for all power infrastructure and needed improvements.  
  • Data centers help utilities maintain consistent revenue streams & improve grid reliability and efficiency
  • Wyoming produces far more energy than it consumes.

About the Black Hills Energy Data Center Tariff (last updated May 2020)

Large Power Contract Service Tariff – at a glance:

  • As approved by the Wyoming Public Service Commission, the Large Power Contract Service tariff is open to any Black Hills Energy retail customer in Wyoming with a load of over 13 megawatts (MW)
  • The tariff requires customer-owned, behind-the-meter dispatchable generation onsite for reliability and backup
  • The associated negotiated service agreement provides qualifying customers with market-based energy rates and access to renewable energy resources

The tariff:

  • Provides data centers with access to lower cost market energy and renewable energy resources
  • Reduces costs to the customer, the utility and customers
  • Mitigates risk to all customers by deferring the need to build new, utility-scale generation to serve data center load

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Water

Modern data centers in Wyoming are designed for air-cooled or closed-loop systems that dramatically reduce water consumption. In fact, data centers only use 2.2% of Cheyenne municipal water supply. Data centers pay for all infrastructure upgrades. Data centers continue to improve technology and prioritize environmental sustainability, leading to significantly lower water usage. Many companies are also working toward “water positive” goals, returning more water to the environment than their operations consume. The transition of the local refinery to biodiesel production resulted in a significant reduction in industrial water use. This change is often referenced as part of broader discussions about historical and future industrial water demand in the community.

Municipal Water
Data Centers in the city of Cheyenne are referred to use city water.  This means that the amount of water they use is monitored, as is the sewer.  Find real data from the Board of Public Utilities here.

Commercial Wells
Commercial wells in Laramie County are regulated by the Wyoming State Engineer’s Office, and any large water user, including data centers, must obtain water rights and permits before groundwater can be used. Proposed projects are reviewed to ensure they do not negatively impact existing users, aquifers, or long-term water supplies.

Closed loop system
A closed-loop cooling system recycles the same water over and over instead of constantly pulling new water from the community supply. This type of system greatly reduces overall water use because the water is cooled, reused, and kept within the facility rather than being discharged or wasted.

Glycol in cooling systems
Glycol is a coolant that is commonly used for freeze protection. Some closed-loop cooling systems use a water-glycol mixture to help prevent freezing in cold climates like Wyoming. Glycol is commonly used in building, HVAC, vehicle, heavy equipment, industrial, along with data center cooling systems as both freeze protection and a heat-transfer fluid. When needed it is disposed of by licensed recycling companies.

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Sewer/Discharge

Many modern data centers use closed-loop cooling systems that recycle or recirculate water and can significantly reduce water discharge. When wastewater or industrial water is discharged, it must comply with applicable local, state, and federal permitting and environmental regulations. Wastewater entering the Board of Public Utilities (BOPU) sewer system is subject to monitoring and regulatory requirements.

Industrial Pretreatment Program/EPA Regulation
The Board of Public Utilities has a program that is required by and approved by the EPA. As a control authority, it is the responsibility of the Board of Public Utilities to prevent the discharge of pollutants into the sanitary sewer infrastructure (this includes sewer mains and the treatment facilities) that would result in the treatment facility’s inability to treat the wastewater or to prevent a contaminant from passing through our facility into the environment.

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Sound/Noise

Modern data centers are designed with noise mitigation in mind and must comply with local noise regulations.

City Noise Ordinance
In Cheyenne, an ordinance addressing data center sound levels from August 2025 limits sound levels to 60 decibels during the day and 55 decibels at night at the property line (about the level of normal conversation or background office noise).

Low Frequency Noise
Research on low-frequency noise and infrasound is ongoing, as a result there isn’t enough sound evidence on the topic. What we do know is that data center companies continue to advance technology & research to reduce all noise associated with their centers.

Lighting

Data centers are designed to minimize light pollution and reduce impacts on surrounding properties and wildlife. Facilities use requested to use downward-facing LED lighting, motion sensors, shielding, and dark-sky compliant fixtures that direct light only where needed rather than allowing it to spill into nearby neighborhoods or the night sky.

During Construction
Lighting impacts are typically greater during construction as projects require temporary work lights, extended work hours, and illuminated equipment for safety reasons. Once a data center is completed, lighting is more controlled and limited primarily for security and operational needs.

Unreasonable Lighting

Residents who experience unreasonable construction lighting directed toward their property are encouraged to contact Daunte at Cheyenne LEADS for assistance.

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Environmental/Air Quality

Even when located in a business or industrial park, data centers in Cheyenne and Laramie County must comply with local, state, and federal environmental regulations. This includes obtaining permits through the Wyoming Department of Environmental Quality (DEQ) for backup generators, fuel storage, air emissions, stormwater management, and other operational systems.

Facilities are required to meet strict air quality standards, complete environmental reviews, and participate in ongoing monitoring and inspections to ensure compliance.

Public notice and comment periods are often part of the permitting process, providing transparency and opportunities for community input before permits are approved.

Land and Wildlife

Data centers evaluate and address potential impacts to wildlife, habitat, drainage, and land use before development moves forward.

Environmental reviews often include studies related to protected species, migratory birds, wetlands, stormwater runoff, and overall site impacts to ensure projects comply with local, state, and federal regulations.

Companies work to minimize land disturbance by preserving natural buffers, using landscaping and berms, controlling lighting, and designing sites to reduce impacts on nearby wildlife and habitat.

Once operational, data centers generally have low traffic, low emissions, and limited outdoor activity compared to many other industrial uses, helping reduce long-term impacts on surrounding land and species.

Workforce

During Construction

  • Data center projects create well-paying skilled trades jobs, including opportunities for certified electricians, contractors, and construction professionals.
  • These are long-term construction projects, not short-term jobs — Microsoft alone has had ongoing construction activity in Cheyenne for more than 14 years.
  • Companies prioritize hiring local workers and contractors whenever possible before bringing in specialized firms from outside the area.
  • Workers coming into the community support the local economy by staying in hotels, eating at restaurants, shopping locally, and spending money throughout Cheyenne and Laramie County.

During construction, workforce opportunities include electricians, operators, trades, contractors, infrastructure crews.

Permanent

  • Data centers create permanent jobs in operations, IT, security, facilities management, networking, and maintenance.
  • These long-term positions provide stable careers, benefits, and training opportunities for local workers.
  • Data centers also support ongoing jobs for local contractors, suppliers, restaurants, hotels, and other businesses in the community.

Long-term operational workforce opportunities include technicians, networking, facilities, cooling systems, security, logistics, critical environment technicians.

Educational/Upskilling Opportunities

Data centers have created opportunities for partnerships with Wyoming Workforce Services, Laramie County Community College, and local K-12 schools to help train and prepare the future workforce.

Programs at LCCC
Microsoft partnered with Laramie County Community College to create the Datacenter Specialist Program, helping train students for careers in server operations, networking, cybersecurity, and IT support.

Microsoft TechSpark
Microsoft has invested millions of dollars in workforce development, education, and nonprofit partnerships in Cheyenne through programs like Microsoft TechSpark, supporting organizations focused on training, technology education, and career readiness.

Wyoming Department of Workforce Services
Data center project provide opportunities for Wyoming Department of Workforce Services to expand apprenticeship, skilled trades, and technical workforce training programs tied to construction and long-term operations careers.

K-12 Partnerships

Microsoft and Meta have both publicly supported education and workforce-development initiatives in communities where they operate data centers.

Meta STEM/STEAM Education Support
Meta has committed funding for STEM and STEAM education programs through its Data Center Community Action Grants program, which provides direct funding to schools, nonprofits, and community organizations in areas where Meta operates data centers. Eligible projects include initiatives that improve science, technology, engineering, arts, and mathematics (STEAM) education and help connect students to future technology-focused opportunities. Meta expanded the program to include Cheyenne in 2026.

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Non-disclosure agreements (NDAs)

NDAs are common in economic development projects and are often necessary to protect confidential business information during site selection and negotiations. Cheyenne LEADS commonly signs NDA’s.

Companies may require NDAs to protect proprietary information, competitive strategies, infrastructure plans, financial data, or potential expansion details before a project is publicly announced.

Economic development officials often sign NDAs so communities can be considered for projects and receive access to the information needed to evaluate infrastructure, land use, utilities, and economic impacts.

Without confidentiality agreements, many companies would simply choose not to consider a community during the competitive site selection process.

Even when NDAs are in place, projects must still comply with public permitting, zoning, environmental review, and public hearing processes before development can move forward.

Development Review Processes

Regardless of whether a company has publicly announced its plans, or is located within an industrial park or business park, approval of a project requires compliance with the applicable development review processes held at the federal, state, county, and municipal level.

Wyoming Department of Environmental Quality (WYDEQ)

The Wyoming Department of Environmental Quality administers a projects compliance with the Industrial Siting review process, as well as water and air quality standards.

Industrial Sitings Process

Wyoming’s Industrial Siting Act reviews certain large-scale industrial developments for potential social, economic, and environmental impacts. However, under Wyoming’s Industrial Siting framework, some non-mineral processing facilities — including data centers — may be exempt from Industrial Siting review when located within an existing industrial or business park. As a result, project review may occur primarily through local planning, zoning, permitting, and development processes rather than through the state Industrial Siting Council.

Projects must still comply with environmental regulations, utility requirements, local land use approvals, and state permitting processes regardless of location. Being in an existing business park may help because the land is already zoned and planned for industrial development, but it does not eliminate state regulatory oversight.

According to Wyoming DEQ, being located within an industrial or business park does not eliminate other permitting, utility, environmental, infrastructure, or local government review requirements.

City of Cheyenne Process

The City of Cheyenne’s development review process requires data center projects to comply with the requirements for zoning, water and sewer utilities, stormwater, traffic, fire protection, and building permits before construction can begin.

Depending on the location, size and scope of the project, developers may also be required to obtain approvals through different public hearings at the City’s Planning Commission, Public Services Committee, and the City Council.  Project’s requiring a public hearing may include those seeking to annex property into the City of Cheyenne, amendments to the City’s future land use map, rezoning, and plat approval.

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Laramie County Process

Similar to the City of Cheyenne’s development review process, Laramie County requires data center projects to comply with the requirements for zoning, water and sewer utilities, stormwater, traffic, fire protection, and building permits before construction can begin.

Depending on the location, size and scope of the project, developers may also be required to obtain approvals through a public hearing with the Laramie County Commissioners

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Why Data Centers Matter to U.S. Security & Military

Data centers are critical to U.S. national security because they support military communications, intelligence gathering, and real-time decision-making. They provide the computing power needed for cybersecurity, artificial intelligence, and the protection of critical infrastructure such as energy, transportation, and financial systems. As technology becomes increasingly important to defense and economic strength, data centers help maintain America’s military readiness and global competitiveness.

Surveillance and AI Technology

Is China really a threat with the US outnumbering all other countries for current data centers?
Quantity isn’t the same as capacity. The goal is to ensure America has the computing capacity, cybersecurity, and AI infrastructure needed to remain economically competitive and secure in the decades ahead.

Are data centers really “surveillance centers”?
It’s reasonable to ask questions about privacy and data security. However, a data center is infrastructure, similar to a power plant or telecommunications facility. The privacy issue is determined by how data is collected and used, not by the existence of the data center itself. AI can certainly be used for surveillance, just as it can be used for medical research, fraud detection, weather forecasting, and national defense. The concern is not the data center itself, but how AI technologies are developed, regulated, and deployed.

The goal is to ensure America has the computing capacity, cybersecurity, and AI infrastructure needed to remain economically competitive and secure in the decades ahead.

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Annexation 

Annexation is the process of bringing land outside city limits into the city so it can receive city services and be governed by city regulations. Cities generally want to annex data centers because they bring substantial economic benefits while requiring relatively few municipal services compared to other types of development.

Why Companies want to be in the city – Many companies choose to annex into the City of Cheyenne because it provides access to reliable city utilities, including water and sewer.

Why the City wants Data Centers – Annexation is beneficial since it allows the city to manage growth ensuring projects contribute to the tax base and help support public infrastructure and services. It also gives the city greater oversight through zoning, permitting, utility agreements, and development requirements.

Community Benefits from Data Center Contributions

Property Taxes Paid by Data Centers in Cheyenne (2012-2015)

Data centers generate significant property tax revenue that supports schools, LCCC, the City of Cheyenne, conservation districts, public safety, and other essential community services. In addition to property taxes, data centers contribute through business personal property taxes and utility-related taxes.

The figures below represent property taxes only. As additional data centers are developed and come online, these contributions will continue to grow, strengthening the tax base and increasing funding for local services throughout Cheyenne and Laramie County.

Property Taxes Paid by Data Centers

Property Taxes from Lunavi, Meta, Microsoft and Related Digital.

Taxing EntityAmount
Laramie County School District #1$4,007,572.98
Laramie County Community College$915,760.98
Laramie County – General$1,527,682.11
Laramie County Library$308,697.94
Weed & Pest$113,079.41
Conservation District$77,102.78
Laramie County School Fund$1,082,347.32
City of Cheyenne$325,297.09
Laramie County Fire Authority$208,484.02
Wyoming State School Fund$1,799,841.16
GRAND TOTAL$10,365,565.79

Additional Sales & Use Tax

Taxing EntityAmount
Sales tax on Power (2018-2024)~$27,000,000 (estimated)
Permitting & Development Fees$36,643,442.00
Tangible Personal Property Tax$48,110,203.00
GRAND TOTAL$111,753,645.00

Wyoming Data Center Incentives

The City of Cheyenne and Laramie County do not currently offer a dedicated local data center incentive program. Most publicly discussed data center incentives in Wyoming are state-level programs.

Wyoming offers sales and use tax exemptions for qualifying data center equipment and software purchases. Qualification requirements vary depending on the exemption category and investment level. Some exemptions require at least $5 million in capital infrastructure investment and more than $2 million in qualifying equipment and software purchases, while additional exemptions may apply when infrastructure investments exceed $50 million.

Wyoming also offers the Managed Data Center Cost Reduction Grant through the Business Ready Communities (BRC) program. This program may reimburse portions of qualifying electrical and broadband costs over a three-year period, subject to program requirements, investment commitments, payroll thresholds, and matching requirements.

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Philanthropic

Microsoft has invested millions of dollars in Cheyenne-area nonprofits, workforce development, education, and community programs through initiatives like Microsoft TechSpark. Since 2018, Microsoft has supported 56 community projects and donated approximately $4.7 million to local organizations.

Microsoft has partnered with organizations including Laramie County Community College, Rooted in Cheyenne, the Boys & Girls Club of Cheyenne, and the Wyoming Community Foundation to support workforce training, technology education, and community services. Meta created the Data Center Community Action Grants program, which provides funding for local schools, nonprofits, STEAM education, technology programs, and community improvement projects in communities where Meta operates data centers — including Cheyenne.

Meta’s grant program focuses on STEM and workforce development, helping schools and nonprofits create technology, engineering, and career-readiness opportunities for students and local residents.

Data center companies also contribute millions annually in property taxes that support local schools, parks, libraries, hospitals, and other public services in Cheyenne and Laramie County.

Business Parks and Zoning

Business Parks, Zoning & Development Standards

Business Parks & CC&Rs
CC&Rs (Covenants, Conditions, and Restrictions) help guide how property in a business park is developed and maintained.

  • They can regulate landscaping, lighting, signage, building design, drainage, noise, and maintenance standards.
  • CC&Rs help create consistency, protect property values, and maintain an attractive, high-quality business environment.
  • They also provide an additional layer of oversight beyond city zoning requirements.

Business Park Zone
The City of Cheyenne’s Business Park (BP) zoning district was created to support long-term economic development and provide consistent standards for business and employment centers. The BP zone was not created specifically for data centers and allows a variety of uses, including offices, technology facilities, medical services, hospitality, retail, and light industrial development. Projects within the BP zone must comply with applicable zoning regulations, development standards, utility requirements, and, where applicable, business park CC&Rs.

Development standards are intended to address issues such as setbacks, landscaping, lighting, access, infrastructure, and overall site compatibility. Requirements vary by project and location, and proposed developments may also be subject to additional review by property owners’ associations, developers, utility providers, or local governments.

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Data Centers in Cheyenne

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