Why Microsoft Can Skip State Review For 3,500 More Data Center Acres In Cheyenne
Microsoft's 3,500-acre data center expansion in Cheyenne, Wyoming, was approved by the City Council despite significant opposition. The project largely avoids a state siting review due to an existing industrial park exemption, sparking debate over regulatory oversight, environmental impacts, and a past Meta-related wastewater contamination incident. Opponents are pushing for legislative changes to remove the data center exemption.
The Cheyenne City Council approved the annexation of 3,500 acres, known as the Highlands, in a 6-3 vote, paving the way for Microsoft's significant data center expansion on the city's south side. This move, the largest annexation in Cheyenne's history, gives the city control over land-use, water, and sewer decisions for the development.
A key point of contention is a Wyoming law that exempts non-mineral processing facilities built in local government-designated industrial or business parks from the state's full Industrial Siting Council review. This exemption allows data centers to bypass a lengthy state process, saving developers up to a year in construction timelines and significant regulatory costs. Opponents, including Councilmen Larry Wolfe, Mark Moody, and Pete Laybourn, argued the city is moving too quickly and surrendering leverage, demanding a fuller accounting of long-term impacts and a community benefits agreement. Laramie County Democratic Party Chair Ted Hanlon also voiced concerns, stating the city is not equipped to act as an industrial regulatory body and criticizing the "regulatory blind spot" that bypasses the Wyoming Department of Environmental Quality's oversight. State Representatives Ann Lucas and Daniel Singh also urged caution and expressed skepticism about the project's benefits, particularly regarding youth retention.
Adding to the opposition's arguments, Ward One resident Stacy Leach highlighted a past incident where a contractor working for Meta contaminated the city's wastewater system, compromising the reuse water system. She accused city officials of withholding information about the incident. Mayor Collins acknowledged being notified generally but denied a deliberate coverup, stating full technical details were not immediately available.
Conversely, supporters of the annexation, such as Councilmen Dr. Mark Rinne and Ken Esquibel, emphasized the economic benefits, including job creation, increased tax revenue, and the need to secure investment to shape the city
’s future and retain residents. Microsoft employee Lance Gold and resident Stacy Balkin testified about the company's positive impact on Cheyenne, including significant economic activity, job creation, and its status as a top taxpayer, asserting Microsoft's commitment to environmental responsibility beyond statutory requirements.