Cheyenne, Wyoming, USA may soon be home to an AI data center that would require more electricity than all residential homes in the state combined, according to local officials.

The planned facility is a collaboration between Tallgrass, a US energy infrastructure company, and Crusoe, a developer of AI data centers.

The project would begin with 1.8 gigawatts of power use and could eventually scale up to 10 gigawatts, which, at full capacity, would consume more electricity than Wyoming currently generates.

To meet these demands, the data center is expected to rely on dedicated gas and renewable power sources rather than the public grid.

Wyoming Governor Mark Gordon praised the project’s potential benefits for the state’s natural gas industry.

The proposed site is south of Cheyenne near the Colorado border and requires approval from state and local regulators.

Tallgrass and Crusoe have not disclosed who will use the facility’s computing power, and there is speculation, but no confirmation, that it may be linked to OpenAI’s Stargate project.

🔗 Source: Ars Technica

🧠 Food for thought

1️⃣ Wyoming’s energy surplus creates unique opportunities for massive computing infrastructure

This project highlights Wyoming’s position as an energy exporter that can accommodate significant demand.

The state currently produces 12 times more energy than it consumes, ranking as the nation’s third-biggest net energy supplier and sending nearly 60 percent of its generated power to other states 1.

This surplus explains why a facility consuming double the state’s current total generation becomes theoretically feasible. Wyoming has the raw energy production capacity that most states lack.

The state’s energy expenditures per capita rank third nationally at $7,904, driven by its fossil fuel industries rather than high consumption. This indicates robust energy infrastructure despite relatively low local demand 2.

This energy abundance has already attracted $24 billion in data center investments along the Interstate 80 corridor, though previous projects clustered in Cheyenne due to power availability and grid infrastructure 3.

2️⃣ AI computing demands are reshaping traditional data center economics and location strategies