Microsoft plans massive 3,200-acre expansion of Cheyenne data centers

CHEYENNE, Wyo. – Microsoft announced a significant expansion of its data center operations in Cheyenne, Wyoming, proposing to acquire 3,200 acres of land to nearly triple its existing footprint. The acquisition includes 3,000 acres of raw land and an adjacent 200-acre parcel in the Bison Business Park, signaling a major investment in the region. Rima Alaily, Microsoft's corporate vice president and general counsel of infrastructure legal affairs, indicated that the company is in the early stages of the process, with land acquisition expected to close later this summer. The initial phases will involve applications for city annexation and rezoning, during which Microsoft plans to coordinate with local officials for community outreach and engagement. The company emphasized its commitment to transparency and its policy of not seeking local property tax incentives, highlighting that the expansion will contribute significantly to local tax revenue. Cheyenne Mayor Patrick Collins praised Microsoft's continued investment, noting its long-standing presence since 2012. The expansion is projected to create hundreds of full-time positions and thousands of construction jobs. Microsoft also committed $68 million to off-site infrastructure projects in Cheyenne, including road, storm sewer, trail, and municipal water pump system upgrades, which are intended to benefit the broader community. Addressing concerns about data center energy demands, Microsoft affirmed its continued partnership with utility provider Black Hills Energy under a Large Power Contract Service tariff. Wes Ashton, Black Hills Energy Vice President of Utilities in Wyoming and South Dakota, and Anthony Ornelas of the Office of Consumer Advocate confirmed that this arrangement ensures Microsoft directly covers the costs of necessary infrastructure upgrades and power procurement, thereby protecting residential power bills from rate impacts. Additionally, Microsoft outlined its strategy to mitigate water usage with evaporative cooling systems and explored designs to potentially achieve zero water usage for cooling in the future. The company also received permits from the Wyoming Department of Environmental Quality for natural gas-fired engines and emergency diesel generators, while reiterating its global commitment to eliminate diesel fuel use by 2030. Alaily stated Microsoft's intention to work with the community on noise and air quality mitigations, operating within regulatory limits.