Cheyenne City Council advances 3,500-acre annexation for data centers
The Cheyenne City Council approved a 3,500-acre annexation for future data center development by Microsoft and another 400-acre parcel, despite public opposition citing concerns over environmental impacts, water, and electricity usage. Efforts to postpone the decision and impose a moratorium failed during a lengthy session. The move clears the path for significant industrial expansion in the area.
The Cheyenne City Council advanced a 3,500-acre annexation of Lummis family property, requested by the owner, for continued data center development. This decision, made after a marathon session, is subject to a third and final council vote. The annexation facilitates a multi-billion-dollar data center build-out by Microsoft, which was characterized by Land Development Manager Rachel Irwing as a necessary step for responsible growth and city involvement in planning.
However, the move faced strong opposition from residents, including Charles Miller, who criticized the process as "premeditated regulatory arbitrage" that bypasses state scrutiny and raises concerns about water and electricity usage. Elizabeth Marvin likened the city's relationship with big tech to "If You Give a Mouse a Cookie." Opponents, led by Heather Madrid, argued that the annexation criteria had not been met due to a lack of a detailed plan and potential risks to citizens' health, safety, and welfare. Residents also expressed fears about the loss of Cheyenne's rural character.
Ward 1 Councilman Larry Wolfe moved to postpone the annexation for four months to negotiate a community benefits agreement with Microsoft, gaining support from Councilmen Mark Moody and Pete Laybourn, who had previously sponsored a failed 12-month moratorium. This motion, along with other attempts to delay the project, ultimately failed. Councilwomen Michelle Aldrich and Kathy Emmons, among the majority, rejected the delay, emphasizing private property rights.
The council also approved a rezoning for a 400-acre parcel south of Interstate 80 for data center development and an expansion of the Swan Ranch Business Park. The decisions have renewed anxieties about Cheyenne's electricity and water supply, though city officials, including Mayor Patrick Collins, assert that data centers use minimal water and that strict regulations are in place. Economic development agency Cheyenne LEADS CEO Betsey Hale highlighted contract power service tariffs ensuring large users pay for their own infrastructure. Additionally, a $2.9 million donation from Tallgrass Energy, developing "Project Jade" (a data center and gas-fired generation facility), for affordable housing further complicated the infrastructure discussion, with critics calling it "corporate camouflage."