Wyoming
Data Centers:
What We Know

The facts: sourced and explained. No spin, just what we know so far.

We will add to this page as we learn more and as more information becomes available.

Last Update: 10/22/2026

What Is a Data Center?

Understanding Data Centers in Wyoming

A data center is a facility built to house computer servers, storage systems, and networking equipment used to store, process, and move digital information.

Wyoming's Legal Definition

For tax purposes, Wyoming defines a “data processing services center” as a business that mainly provides space and infrastructure to house networked servers and their storage in one location. (Source: Wyoming Statute 39-15-101(a)(xliv))

This definition is the basis for the state’s sales tax exemption on qualifying data center equipment. To qualify, a facility has to invest at least $2 million in equipment, on top of a large investment in the building itself. See “Do data centers get tax breaks?” below for details (Wyoming Legislature).

This page covers facilities that store, process and move data for businesses and online services. It does not include cryptocurrency mining operations.

How Local Communities Define It

Individual communities may define data centers differently for local planning purposes. Cheyenne adopted its own zoning definition in 2022 covering buildings designed to house networked computer and data processing equipment, along with related support infrastructure. (Source: City of Cheyenne, Planning and Development Department)

Small to Hyperscale: A Matter of Size

Data centers range widely in size — from small operations under 5,000 square feet to large "hyperscale" facilities, generally defined as at least 5,000 servers and more than 10,000 square feet. (Source: City of Cheyenne, citing IBM and CoreSite)

Nearly Two Decades of Data Centers in Wyoming

Wyoming has been home to data centers since 2007. This timeline follows each facility from the day it was announced and notes where it stands today. Every entry links to its original source.

Operating — Open and running

Planned — Announced or approved, not yet under construction

Under Construction — Work is underway

Who Decides What

No single agency approves a data center in Wyoming. Depending on location and size, a project may need approval from a city, a county and the state. Here's who decides what, and where to follow along.

City Councils — Annexation and zoning inside city limits. Cheyenne agendas and minutes.

County Commissions — Zoning and conditional use permits outside city limits. Laramie County meetings.

Wyoming DEQ Air Quality — Permits for generators and on-site power, with public comment periods. Search permits

Industrial Siting Council — State review of large industrial projects. Projects in designated industrial parks are exempt. Requirements and decisions.

Public Service Commission — Approves utility rates and tariffs, including how data centers pay for power. Dockets and filings.

Governor's Office — Executive Order 2026-03 sets statewide principles for how agencies review data center projects. Executive orders.

What This Page Covers

Because of their scale, these facilities intersect with a community in several ways at once: local economies, natural resources, and community infrastructure. This page organizes what is publicly known into three areas — Economic, Environmental, and Community — with the source cited alongside each figure or claim. It will be updated as new, verified information becomes available.

Economic

Facts

About our local and state taxes

In 2022, Cheyenne's effective property tax rate was about 0.65% (Wyoming Legislature).
This increase is caused by the increase in housing and living costs along with the increase in affordable living demand.
- Pandemic-era housing demand and low mortgage rates drove property values up across Wyoming (Cowboy State Daily).
Datacenters are also paying these increased taxes.
They pay in full for property and land tax.
- Wyoming's sales tax exemption for data center equipment does not cover property taxes (Wyoming Tribune Eagle).
Black Hills Energy established a Tariff.
- This tariff means that citizens and communities are not footing or paying the bill when it comes to datacenters and their development.

Changes

In the current and future workforce environment

With datacenters becoming more and more prominent, job opportunities come with that expansion.
Hundreds of permanent and 1,000+ contract jobs provided via local datacenter developments.
- Microsoft has more than 320 full-time employees in Cheyenne and says nearly 2,000 tradespeople have helped build its data centers (Microsoft). Meta expects more than 1,000 construction workers at its peak and about 100 permanent jobs (Meta).
Heavy emphasis on trades such as HVAC, plumbing, and electric work.
New opportunities to learn through the LCCC trade program.
- Local businesses hosting live training for high school and college grads looking to get into the trades.
- Example: the Metallica Scholars program with LCCC, Laramie County School District No. 1 and local industry partners (Cowboy State Daily).
Datacenters have and will continue to host informational hiring events.
- Examples include Microsoft, which joined LCCC's Trades Day for students entering the trades.

Impacts

On our water and electricity

Meta has worked with Black Hills to plan, maintain and pay in full for their water and power usage. They have also worked with the Board of Public Utilities to pay in full for water and wastewater usage and treatment.
- Goal is to be water positive by 2030
- Will match all electricity use with 100% clean and renewable energy
Microsoft has implemented their Community-First AI Infrastructure.
- This means they pay in full so our electricity bills don't rise due to their presence
- Rise in infrastructure development has caused a majority of the rise in electricity bills and prices

"Black Hills Energy has invested approximately $250 million in safety, reliability, and system integrity."

– Black Hills Energy, on its Cheyenne rate review, 2022

From sound to wildlife habitat, data centers are required to operate within specific environmental limits. Here's what those limits are and how they're enforced.

Environmental

Data centers affect the land, water, and electricity around them. This section covers all three: Nature (noise, air quality, and wildlife impact), Water (how much data centers use and the technology behind it), and Electricity (power draw and what it costs to serve large facilities) — with sourced facts for each.

From sound to wildlife habitat, data centers are required to operate within specific environmental limits. Here's what those limits are and how they're enforced.

Cheyenne law sets hard limits on how much sound a data center can produce at its property line (City of Cheyenne Planning & Development, Aug. 2025).

If a facility exceeds these limits, it's no longer classified as a data center under city code — it's reclassified as an industrial use, which comes with stricter oversight. A sound study has to prove a project will meet these limits before it can be approved.

(Source: City of Cheyenne Planning & Development, Aug. 2025)

What data center operators say about noise:

Microsoft states its servers run inside sealed buildings and aren't audible from outside, backup generators run only for brief periodic testing, and outdoor cooling equipment is engineered with sound-dampening measures to stay within local limits — consistent with the City's property-line standard above. (Source: Microsoft Noise Fact Sheet)
Meta has not published noise-specific information for their Cheyenne facility.
Google's Laramie County campus is planned and not yet built. No noise-specific information has been published for it yet.
Other Cheyenne-area operators (Lunavi, Related Digital, Vantage) — no publicly available noise-specific information found.

Any data center running backup diesel generators is subject to Wyoming's air quality permitting process before those generators can be installed.

Emissions permitting: Backup generators and their fuel storage systems require an air quality permit from the Wyoming DEQ's Air Quality Division, covering pollutants such as nitrogen oxides (NOx), sulfur oxides (SOx), and volatile organic compounds (VOCs). (Source: Wyoming DEQ, New Source Review Program)
Public process: DEQ issues a notice of intent to approve and opens a public comment period before finalizing a permit. A public hearing is held only if a formally "aggrieved party" requests one.

What data center operators say about air quality:

Microsoft's permit, in the public record:
- Microsoft's Cheyenne data centers received Wyoming DEQ approval covering 128 backup diesel generators and associated fuel storage tanks holding up to 1.8 million gallons of diesel — covering emissions of nitrogen oxides (NOx), sulfur oxides (SOx), and volatile organic compounds (VOCs).
  You can look up this permit yourself through Wyoming DEQ's Open Air system — a free, public database, no account required:
  - Go to openair.wyo.gov
    Search Facility ID: F032074
    Look for Permit No. P0039454
    This same system lets you search any AQD-permitted facility in Wyoming.
Meta — no air-quality permit or generator information found publicly for their Cheyenne facility at this time. Per Wyoming DEQ, facilities that are fully grid-connected (rather than running their own generation) may not require the same air quality permitting.
Google said in September 2026 that it planned to apply for an air permit for the backup generators at its planned Laramie County campus, which would open a 30-day public comment period. Once filed, it will be searchable at openair.wyo.gov. (Source: Wyoming Tribune Eagle)

Before a data center can break ground in Cheyenne, the site itself has to be evaluated for how construction and operation will affect drainage, water flow, and the surrounding land.

Drainage and stormwater: Drainage plans must be submitted with the building permit application for all new commercial construction, prepared by a Wyoming Licensed Professional Engineer or Professional Land Surveyor. (Source: City of Cheyenne, Building Code Amendment, Section 107.1)
Landscaping: Development in the Business Park zone — where data centers are typically sited — must meet the City's Landscaping Standards (UDC Section 6.3), including a minimum of one tree per 100 feet of street frontage. (Source: City of Cheyenne UDC, Article 5, Section 5.4.7)
Site plan review: Setbacks, building placement, and overall site compatibility are reviewed by Planning & Development as part of the standard approval process. (Source: City of Cheyenne Planning and Development Department)

What data center operators say about land use:

Meta states its Cheyenne facility will use native, drought-resistant landscaping and will capture and infiltrate rainwater on site. (Source: Meta Cheyenne Data Center one-pager)
Microsoft — no land-use-specific information has been published.
Google's Laramie County campus is planned and not yet built. No land-use-specific information has been published for it yet.

Development projects that could affect protected species or bird habitat are subject to federal wildlife review, separate from the City's own permitting process.

Federal oversight: The U.S. Fish & Wildlife Service's Wyoming Ecological Services Field Office reviews project impacts to migratory birds, threatened and endangered species, and their habitats — a role that applies to development statewide, not just data centers specifically. (Source: U.S. Fish & Wildlife Service, Wyoming Ecological Services Field Office)
Migratory Bird Treaty Act: Federal law protects migratory bird species from harm during construction and operation, and developers may need to time land-disturbing work around nesting seasons to comply.

What data center operators say about wildlife:

Meta states it focuses on preserving natural spaces around its data center properties, aiming to dedicate and restore the majority of unbuilt outdoor space to native habitat. (Source: Meta Data Centers, Environment page)
Microsoft said in September 2026 that it has ecosystem-restoring projects tied to data centers being built in Wyoming. (Source: Microsoft)

Cheyenne's electricity is supplied by Black Hills Energy, and large power users like data centers operate under a specific tariff designed to keep their costs off other customers' bills.

Large Power Contract Service (LPCS) tariff: Approved by the Wyoming Public Service Commission in 2016, this tariff requires large-load customers (over 13 megawatts) to pay for all new infrastructure needed to serve them — transmission upgrades, new generation capacity, and grid connections — rather than spreading those costs across regular ratepayers. (Source: Black Hills Energy, Energy Solutions for Data Centers)
Transmission costs: Customers on the LPCS tariff also pay the transmission costs allocated to them under their service agreement. (Source: Black Hills Energy, Cheyenne Light electric tariff, Sheet No. 21)
You can look up the original PSC filing yourself: Docket No. 20003-146-ET-15, Record No. 14242, filed by Cheyenne Light, Fuel and Power Company — searchable through the Wyoming PSC's Docket Management System at dms.wyo.gov.

What data center operators say about electricity:

Microsoft and Meta both operate under the LPCS tariff with Black Hills Energy, meaning both companies pay directly for the infrastructure and power procurement needed to serve their facilities. (Source: Black Hills Energy, Energy Solutions for Data Centers)
Microsoft states it is transitioning its Wyoming backup generators away from standard diesel fuel toward a renewable biofuel to reduce net carbon emissions, and is pursuing 100% renewable energy coverage through a power purchase agreement with Cheyenne Light. (Source: Microsoft Datacenters in Wyoming fact sheet)
Google Black Hills Energy signed agreements in September 2026 to serve Google's planned Laramie County campus under the same LPCS tariff, with up to 590 megawatts of service starting in late 2027. Black Hills says the agreements are structured so Google bears all costs and they don't shift to existing customers. Black Hills plans to build 564 megawatts of natural gas generation at its Cheyenne Prairie Generating Station to serve the project. (Source: Black Hills Corp.)

Air, Water, or Both: How Cooling Choices Shape Water Use

Not all data centers use water the same way. The cooling method a facility uses — not what the data center is used for — determines how much water it needs. Cheyenne's rules push developers toward the methods that use the least.

Three cooling methods, in plain terms

Air-Cooled Systems

Use fans and outside air instead of water to remove heat — no water goes into cooling at all. Data center equipment generally needs incoming air around 64–80°F, per industry standards (ASHRAE). In cold, dry conditions, some facilities add a small amount of moisture to the air to prevent static buildup — a separate system from cooling, using a smaller amount of water.

Closed-Loop Systems

Circulate the same water through sealed pipes, cooling and reusing it instead of releasing it. A closed-loop system consumes only a small fraction of the water it holds — most of it stays in the loop and is used again and again, with small losses to evaporation or leaks over time.

Evaporative (Open-Loop) Systems

Use water more directly, cooling equipment by evaporating it into the air. This is the standard method in hot, humid climates, but it uses far more water than closed-loop systems.

What data center operators say about water use:

Microsoft states its existing Wyoming facilities are cooled using direct evaporative cooling, which uses water for cooling less than 10% of the year. Microsoft purchases its water from BOPU; on days above 85°F, water cycles through the system 2–5 times before the remainder is discharged back to the local wastewater treatment plant. (Source: Microsoft Datacenters in Wyoming fact sheet)
Meta states its Cheyenne facility uses an efficient, closed-loop, liquid-cooled system designed to use zero operational water. (Source: Meta Cheyenne Data Center one-pager)
Google states its planned Laramie County campus will use an air-cooled, closed-loop system that won't consume or evaporate water for cooling. It projects 20–30 million gallons a year for restrooms, kitchens, maintenance and fire suppression, drawn from deep wells, with wastewater treated on site and sent to lined evaporation ponds. (Source: Wyoming Tribune Eagle)

Community & Civic Investments

Data center operators in Cheyenne and Laramie County contribute to local public services through off-site infrastructure funding, educational partnerships, and grant programs.

$68M+

In local municipal & roadway upgrades

Image Credits: Matthew Idler Photography

Microsoft reports committing more than $68 million toward completed and planned off-site infrastructure supporting its Cheyenne facilities, covering roadways, storm sewers, water mains, and greenways.
- (Note: Specific off-site utility obligations are governed across individual site-development agreements rather than a single municipal community benefits agreement.)

“Microsoft has committed over $68M in completed and future off-site infrastructure improvements across Cheyenne. Projects like roadway and storm sewer improvements, trail roadway and greenway improvements, new pump stations, and improved municipal water infrastructure are critical for datacenter operation, but they also make up the infrastructure systems that Cheyenne residents use every day.” -Microsoft Source, April 14, 2026

Learn More

1,000+

Students trained through Microsoft’s Datacenter Academy at LCCC since 2019.

Higher Education Partnerships: Programs at Laramie County Community College (LCCC) offer technical credentials, including a Data Center Specialist Program and cybersecurity coursework. Microsoft’s Datacenter Academy at LCCC offers hands-on training, mentoring, and scholarships and internships for those who qualify, and has trained more than 1,000 students since 2019 (Microsoft).
Vocational Pathways: Meta provides funding for regional trade initiatives through America's Workforce Academy, which opened in 2025 with room for 60 high school students (Wyoming Tribune Eagle). Meta also funds America’s Workforce Academy, a no-cost national trades program open to Wyoming residents.

Image Credits: LCCC IT https://www.lccc.wy.edu/pathways/InformationTechnology/

More about the Laramie County Community College Data Center Specialist Program:

Contact the Data Centers

Microsoft

Email: CheyenneDC@microsoft.com

Phone: 307-823-6336

Google

Google's Local Website

Meta's Local Website

Microsoft's Local Website

Questions We’ve Heard, Answers We’ve Found

Will data centers raise my electric bill?

Black Hills Energy, Cheyenne’s electric company, says no.

Data centers here pay a separate rate. Under it, they pay for the power lines and equipment needed to serve them, so those costs aren’t passed on to your bill (Black Hills Energy presentation to the Wyoming Legislature).

Your bill can still go up for other reasons, like upgrades to the power system everyone uses. Before Black Hills can raise rates, the Wyoming Public Service Commission has to approve it, and the public can comment first (Wyoming PSC).

For more on how data centers buy power, see the Electricity section above.

How much water do data centers use?

It depends on how each one is cooled (Congressional Research Service).

Water withdrawn (often just called “water use”) is water taken in. Much of it can be treated and returned to rivers, lakes or groundwater.
Water consumed is the part that isn’t returned, mostly lost to evaporation (USGS).

Closed-loop cooling reuses the same water in sealed pipes, topped off every few years. Meta says its Cheyenne facility is designed to use zero operational water this way (Meta).

Evaporative cooling evaporates water to cool equipment. Microsoft says it uses this less than 10% of the year, and what doesn’t evaporate goes to Cheyenne’s wastewater plant (Microsoft).

Air-cooled, closed-loop cooling uses air instead of water. Google says its planned Laramie County campus will use this system, plus 20–30 million gallons a year for restrooms, kitchens and fire suppression (Wyoming Tribune Eagle).

We didn’t find a statewide total. Cheyenne is the one community we found that publishes numbers: the city reports its data centers used about 93 million gallons in 2025, roughly 2% of the city’s water (City of Cheyenne: see “How are we monitoring data center water usage?”).

Questions about your local water supply go to your water utility. In Cheyenne, that’s BOPU. More detail is in the Water tab of the Environmental section.

Are data centers loud?

In Cheyenne, data centers have to stay within noise limits measured at their property line (City of Cheyenne):

Next to homes and most other areas: 60 decibels during the day and 55 at night.
Next to commercial or industrial areas: 70 decibels during the day and 65 at night.

Before a project is approved, a sound study has to show it will meet those limits. A facility that goes over them is no longer treated as a data center under city code. It’s reclassified as industrial, which comes with stricter rules.

Microsoft says its servers run inside sealed buildings and can’t be heard outside, and that its backup generators only run for brief testing (Microsoft).

Noise rules outside Cheyenne are set by each city or county. If you have a noise concern about a facility in Cheyenne, contact the City of Cheyenne at (307) 637-6200. More detail is in the Noise tab of the Environmental section.

Do the backup generators cause air or noise pollution?

Data centers keep diesel generators on site as backup power in case the grid goes down. Like any diesel engine, they release air pollution and make noise when they run.

Air: In Wyoming, these generators and their fuel tanks need an air quality permit from the Department of Environmental Quality (DEQ) before they can be installed (Wyoming DEQ). Before DEQ approves a permit, it posts a public notice and opens a comment period. A public hearing is held if a formally affected party requests one.

Noise: Microsoft says its generators only run for brief periodic testing (Microsoft). In Cheyenne, data centers must also stay within the city’s noise limits at their property line. See “Are data centers loud?” above.

For example, Microsoft’s Cheyenne data centers have DEQ approval for 128 backup generators. Google said in September that it planned to apply for a generator permit for its Laramie County campus, which would open a 30-day public comment period (Wyoming Tribune Eagle).

Permits are public. You can look up any permitted facility in Wyoming for free at openair.wyo.gov. The Air tab in the Environmental section walks through how.

Who decides whether a data center gets built?

It depends on where it’s built. Several local and state groups each review a different part:

City council: zoning and annexation for projects inside city limits.
County commission: zoning and permits for projects outside city limits.
Wyoming DEQ: air quality permits for backup generators.
Industrial Siting Council: state review of large industrial projects, except those in designated industrial parks (Wyoming DEQ).
Public Service Commission: utility rates, including how data centers pay for power (Wyoming PSC).
Governor’s Office: Executive Order 2026-03 sets statewide principles for how agencies review data center projects (Governor’s Office).

Links to each are in the Who Decides What section near the top of the page.

How can I share my opinion on a proposed data center?

You can speak up at several points before a project is approved:

City council or county commission meetings include public comment, and agendas are posted ahead of time. Check your city or county website to see when a project is on the agenda.
Air quality permits from the Wyoming DEQ open a public comment period before approval (openair.wyo.gov).
Utility rate changes go through the Wyoming Public Service Commission, which takes public comment (Wyoming PSC).

In Cheyenne, city council agendas and minutes are posted at cheyennecity.org.

Do data centers get tax breaks?

Sales tax on equipment: Yes. Wyoming exempts some data center equipment from state sales tax. That includes servers, computer equipment and software, and for the largest facilities, backup power and specialized heating and cooling. To qualify, a facility has to invest at least $2 million in equipment, on top of a large investment in the building itself (Wyoming Legislature).

What it has cost: The Wyoming Department of Revenue estimates the exemption meant about $166 million in sales tax was not collected from 2010 through 2022 (Wyoming Department of Revenue).

What’s not exempt: The exemption doesn’t cover construction, property taxes, or sales tax on electricity (Wyoming Tribune Eagle). According to the Tax Foundation, Wyoming taxes data center equipment as property from the day it’s installed, while some states exempt it for 10 years or more (Tax Foundation).

Other incentives: States can also offer one-time incentives to attract a project. In 2012, then-Gov. Matt Mead said Wyoming offered Microsoft nearly $11 million in incentives (Cowboy State Daily).

Is it changing? The exemption is set in state law (Wyo. Stat. 39-15-105). In November 2025, the Legislature’s Joint Revenue Committee discussed it because the state lacks data on its effects, but no bill to change it was introduced (Wyoming Tribune Eagle).

Wyoming Data Centers: What We Know