Wyoming contemplates power supply regulations for AI, data centers
Wyoming is grappling with how to regulate power supply for large-scale data centers and AI operations. Developers are proposing dedicated power plants to meet massive electrical demands, but state officials lack a clear regulatory framework. The Wyoming Public Service Commission recently rejected a request from Anschutz Corporation regarding its proposed power project, citing a need for new 'non-utility generator' rules.
Wyoming faces a significant challenge in regulating the power supply for a growing number of blockchain, artificial intelligence, and data center developments. Developers are proposing to build dedicated, stand-alone power plants to serve these industries, but state officials currently lack a comprehensive framework to regulate these customer-specific generation stations.
Anschutz Corporation, through its subsidiaries, has been planning to construct 3,200 megawatts of natural gas and 1,000 megawatts of solar power in Carbon County, southern Wyoming, specifically to power one or two data centers. This proposed capacity is equivalent to 33% of Wyoming's total generating capacity. However, the Wyoming Public Service Commission recently voted 2-1 to reject Anschutz's request for a declaratory judgment that its direct power-to-customer project should not be considered a public utility. Commission Chairman Mike Robinson stated the request was premature as the agency is in the process of drafting new rules for "non-utility generator" businesses, while Deputy Chairman Chris Petrie dissented, citing substantial effort and investment by the petitioner.
Traditional utilities like Rocky Mountain Power are reportedly reluctant to accommodate these new "large load" customers, which require significantly more electricity than typical industrial users. This has prompted industries like trona mining to advocate for laws allowing third-party generation, as Rocky Mountain Power has allegedly indicated a seven-year wait for significant power boosts. Data center developer Prometheus Hyperscale is also proposing its own natural gas-fired power generation to avoid reliance on the public utility grid.
Governor Mark Gordon signed Executive Order 2026-03, "Data Centers the Wyoming Way," in June, declaring data center development vital for national security and economic growth. While the order outlines principles for attracting investment and protecting state resources, it does not prescribe specific regulatory policies. The Wyoming Legislature is also considering various approaches, including a potential tax on electricity producers to protect existing ratepayers and moderate the rapid growth of data centers and renewable energy projects. A public hearing on the Public Service Commission's proposed non-utility generator rules is scheduled for August 5th in Cheyenne.