Data Center Boom Powers Cheyenne’s Push For Annexation

Cheyenne, Wyoming, is undergoing a significant expansion, driven largely by a boom in data center developments, prompting a four-year push to annex portions of Laramie County into city limits. Mayor Patrick Collins highlights this growth strategy as crucial for managing the area's development and funding essential infrastructure. Several major data center projects are underway or have been approved, including Tallgrass Energy and Crusoe Energy Systems' Project Jade, a massive artificial intelligence data center projected to consume 2.7 gigawatts of self-generated power. Related Digital has broken ground on a 302-megawatt, $1.2 billion facility, and Meta is progressing with its $800 million, 715,000-square-foot Project Cosmo. Microsoft also has a long-standing presence in Cheyenne, with its first data center established in 2012, benefiting from previous annexations that expanded business parks like North Range. The annexation efforts, systematically initiated by the Cheyenne City Council in 2022, aim to incorporate areas surrounded by the city and expand boundaries for data center growth. This integration provides benefits to companies, such as reduced water and sewer rates within city limits. Cheyenne LEADS CEO Betsey Hale notes that existing data centers are strategically located within business parks or County Planned Unit Developments (PUDs) to ensure compatibility with land use regulations. Cheyenne and Laramie County are actively collaborating on land use and future growth planning. Wyoming's cool climate, business-friendly environment, and sales tax exemptions for certain data centers make it an attractive location. This approach stands in stark contrast to other regions, as the article notes that Maine is considering a ban on new data center construction until 2027, South Dakota is adopting a more cautious stance on water and energy strain, Ohio activists are seeking a statewide ban, and Denver is considering a year-long moratorium on new data centers.