Cheyenne City Council rejects data center moratorium

The Cheyenne City Council has overwhelmingly rejected a proposed 12-month moratorium on new data center developments, with an 8-1 vote against the ordinance after an extensive public debate. The measure, introduced by Councilor Mark Moody, aimed to temporarily halt permits and zoning changes for new facilities, allowing the city to assess the industry's rapid expansion.

During public comment, numerous residents voiced anxieties regarding the water and power demands of hyperscale AI facilities, potential noise pollution, and broader environmental impacts. Residents like Jana Elias highlighted concerns about the power grid, while Stacey Leach questioned the safety of closed-loop cooling technologies. Patricia McCoy expressed frustration over a perceived lack of transparency and a rushed approval process without adequate regulations.

Conversely, local union workers, contractors, and business advocates urged the council to reject the moratorium, arguing it would hinder economic growth and force skilled tradespeople to seek work outside the state. Marcie Kindred, executive director of the Wyoming State AFL-CIO, emphasized that data center builders are local taxpayers contributing to economic development. Jeff Pope, Cheyenne LEADS vice chair, warned that a moratorium would damage the positive impacts of companies like Microsoft and Meta in the community.

Council members ultimately concluded that while the pace of data center expansion is considerable, a moratorium was an inappropriate response. They cited the city's existing growth management processes, the lengthy development timeline for data centers (around six years including electrical agreements), and the city's lack of expertise and budget to conduct the broad environmental and grid studies mandated by the proposed ordinance. Councilor Jeff White expressed concern that stopping development in a specific industry could set a damaging precedent.