Wyoming contemplates power supply regulations for AI, data centers
Wyoming is deliberating new regulations for power supply to meet the electrical demands of AI and data centers. The Wyoming Public Service Commission recently denied a request from Anschutz Corporation subsidiaries to operate a direct power-to-customer project in Carbon County without being classified as a public utility. This decision comes as the commission works on establishing new rules for non-utility power generators.
Wyoming is grappling with how to regulate new power generation sources specifically intended to meet the significant electrical demands of growing blockchain, artificial intelligence, and data center industries. Developers are proposing stand-alone power plants, but the state lacks a regulatory framework for these customer-specific stations.
Anschutz Corporation subsidiaries, including Power Company of Wyoming, are at the forefront of this issue, having planned to build 3,200 megawatts of natural gas-powered generation and 1,000 megawatts of solar, equivalent to one-third of Wyoming's total capacity, to power one or two data centers in southern Wyoming. They aimed to separate this service from existing utility customers' bills. However, the Wyoming Public Service Commission recently denied Anschutz's request for a declaratory judgment that would prevent their Carbon County project from being considered a public utility. Commission Chairman Mike Robinson stated the request was premature, noting the petitioners lacked facilities, generation, customers, or agreements, and that the agency is currently drafting new rules for "non-utility generator" businesses.
Commissioner Chris Petrie, in a dissenting vote, argued that delaying clarification was unreasonable given the substantial effort and investment already made by Anschutz, highlighting the public interest and urgency of the matter. The decision aligns with objections from traditional utilities like Rocky Mountain Power, which some proponents accuse of being slow to accommodate large new electrical loads. The broader industry, including Wyoming's trona mining sector, has advocated for clearer laws to allow third-party generation, citing delays from Rocky Mountain Power in providing necessary power boosts for economic expansion.