Wyoming Select Water Committee Discusses Data Center Resource Impact

The Wyoming Select Water Committee convened in Cheyenne to examine the potential economic benefits and resource challenges associated with data center development in the state. Wyoming State Engineer Brandon Gebhart moderated discussions focusing on the high water and electricity consumption of these facilities, particularly in light of the state's ongoing drought conditions. Officials highlighted that Wyoming's cooler temperatures, power availability, and tax incentives attract data centers, contributing to economic diversification and job creation. Laramie County, for example, already hosts 13 data centers with seven more planned. While proponents emphasized over $1 billion in returns from under $10 million in investment through property and sales taxes, constituents and experts voiced concerns about the environmental strain. Experts testified that newer data centers would implement closed-loop cooling systems, limiting water usage to an estimated equivalent of three Olympic-sized pools over six years, and would use trucked-in water or self-sustaining electrical facilities. Despite these assurances, the state engineer acknowledged the challenges posed by declining hydrology across Wyoming. The discussion also touched upon the future impact of AI-driven data centers, which run hotter and require more energy, though current cloud-based providers in Wyoming are not yet heavily reliant on such chips.