Microsoft intends to purchase 3,200 acres south of Cheyenne for data centers

Microsoft has revealed its intention to acquire approximately 3,200 acres of land south of Cheyenne, Wyoming, for the continued development of data centers, a move that would effectively triple the tech giant's footprint in the area since its initial presence in 2012. The expansion involves a 200-acre parcel within the Bison Business Park and an adjacent 3,000-acre tract, parts of which are currently owned by Senator Cynthia Lummis’ Old Horse Pasture Inc. and Arp and Hammond Hardware Co. Local officials, including Cheyenne Mayor Patrick Collins and Betsey Hale, CEO of Cheyenne LEADS, support the project, citing the chosen location as "textbook land-use planning" due to its unsuitability for residential housing. They highlight the substantial revenue generated for public services, noting Microsoft's status as a top taxpayer in both Cheyenne and Laramie County, contributing over $11 million annually. Mayor Collins emphasized that these taxes provide crucial funds for city amenities without straining resources like residential growth. Addressing critical concerns, Microsoft, in collaboration with Black Hills Energy, has established a Large Power Contract Service tariff. This agreement ensures Microsoft covers all necessary infrastructure upgrades, including new generation and substations, thereby protecting residential and small business customers from rate increases, as confirmed by Wes Ashton, Black Hills Energy vice president of utilities. Microsoft's Corporate Vice President Bowen Wallace reiterated the company's commitment to "strengthen, not strain" the community through increased investment and tax revenue. On environmental fronts, Microsoft plans to match its fossil fuel consumption with carbon-free energy for the regional grid and aims to eliminate diesel for backup power by 2030, exploring natural gas alternatives. Regarding water, Hale clarified that current data centers use only 1.2% of Cheyenne's total water. The new development will utilize closed-loop cooling technology, significantly reducing water demand, and Microsoft pledges to be "water positive" by 2030, already funding projects to restore millions of gallons to river basins. The multi-year development will proceed with formal applications for city annexation and rezoning, requiring public hearings and ongoing engagement with the community.