Microsoft To Triple Its Cheyenne Data Center Footprint With 3,200-Acre Land Buy

Microsoft has announced a substantial expansion of its data center operations in Cheyenne, Wyoming, with plans to acquire an additional 3,200 acres. This acquisition will effectively triple the company's existing footprint in Wyoming's capital city, where it currently operates 11 data centers and has three more under construction across four campuses. The newly purchased land includes a 200-acre parcel in Bison Business Park and an adjacent 3,000-acre parcel. The announcement comes amidst ongoing statewide debates regarding the broader impacts of data centers on energy costs and water usage. Microsoft spokeswoman Rima Alaily, vice president and general counsel for infrastructure and legal affairs, stated that Cheyenne's high-skilled workforce, infrastructure, and energy industry were key factors for the continued investment. She also highlighted Microsoft's "innovative utility partnership" with Black Hills Energy, which includes a power contract service tariff designed to prevent rate increases for community residents. Microsoft is exploring tapping into Wyoming's status as a net energy exporter and employing closed-loop cooling technologies to minimize water consumption, in addition to broader water-replenishment projects. Despite Microsoft's assurances, Wyoming lawmakers, like Sen. Cale Case, R-Lander, expressed skepticism about claims regarding power rates and water usage, citing concerns about grid congestion and critical groundwater issues in the Colorado Basin. Case believes data center projects warrant more state-level industrial siting involvement rather than solely county commission permits. Cheyenne Mayor Patrick Collins, however, views the expansion as an opportunity to retain young adults with high-paying jobs and noted the city is proactively addressing housing challenges through zoning changes. He also highlighted Microsoft's significant tax contributions, which made it the largest taxpayer in Laramie County last year, supporting local services and amenities. Microsoft anticipates a multi-year, carefully sequenced build-out with multiple public hearings ahead.