Microsoft plans 3,200-acre data center expansion in Cheyenne

Microsoft has announced plans to acquire approximately 3,200 acres in southeast Cheyenne, Wyoming, for the future development of data centers. This expansion builds upon Microsoft's existing data center operations in Cheyenne, which have been in place since 2012. Cheyenne Mayor Patrick expressed enthusiasm for the project, highlighting Microsoft's commitment to fully cover its development costs and the potential for new, high-quality jobs for local residents. Data centers are critical infrastructure for the internet, supporting various online services and increasingly powering AI systems. However, the proposed expansion has raised significant concerns among locals regarding water usage and electricity demand. Mayor Patrick noted that current data centers in Cheyenne utilize only 1.2% of the city's annual water supply. Microsoft stated that its cooling systems use less than 10% of the year's water and pledged to replenish more water than it consumes in the region. Regarding electricity, Microsoft committed to covering all power and infrastructure costs to prevent increased utility expenses for residents, working under a contract with Black Hills Energy to manage system upgrades and energy needs. The project is currently in its early stages, with public hearings and community input sessions planned. These discussions will be crucial in shaping the future development and addressing local concerns.