Cheyenne, Wyoming grapples with rapid data center growth and local concerns

Cheyenne, Wyoming grapples with rapid data center growth and local concerns

News ClipCowboy State Daily·Cheyenne, Laramie County, WY·5/19/2026

Cheyenne, Wyoming is experiencing a significant data center boom, raising concerns among some residents regarding water, noise, electricity, and the loss of small-town atmosphere. A City Council member has called for a 12-month moratorium on new data center construction amidst the rapid development.

zoningoppositionenvironmentalelectricitywatermoratoriumgovernment
Microsoft
Gov: Cheyenne City Council, Wyoming Governor

Cheyenne, Wyoming is undergoing a massive data center expansion, with several large facilities either operating or under construction. Tech giant Microsoft has a significant presence, having recently doubled its footprint and become the largest taxpayer in Cheyenne and second largest in Laramie County, paying $11 million in property taxes. Another major development, the Related Digital project, is expected to generate $250 million in tax revenues over 15 years. Local officials, including the governor and mayor, are enthusiastic about the economic benefits, with some speculating that Cheyenne could eventually host 65 to 70 data centers.

However, this rapid growth has sparked considerable local opposition and concern. Residents are worried about water usage, increased noise, strain on the electric grid, potential rises in electric rates, and the erosion of Cheyenne's small-town character. City Council meetings have seen large turnouts of residents voicing these concerns. Mark Moody, a Cheyenne City Council member, has responded to the community's worries by proposing a 12-month moratorium on further data center construction.

The article also highlights how unexpectedly this boom occurred, with many projects proceeding without public hearings due to existing business park zoning. The author, Dave Simpson, points out the stark contrast between the thousands of construction jobs created and the relatively few full-time employees data centers bring. He concludes that Cheyenne is significantly invested in this data center trend, with uncertain future implications.