Wyoming is being considered as a possible site for a new large-scale data center resulting from a partnership between artificial intelligence company OpenAI and cloud computing giant Oracle, Cowboy State Daily reports.
Cheyenne, in particular, has emerged as a likely candidate, given its established reputation as a data center hub.
The interest follows OpenAI’s announcement on Tuesday that it plans to lease 4.5 gigawatts of data center power from Oracle — an amount sufficient to power roughly 750,000 homes. To meet this demand, Oracle is expected to develop new data centers in collaboration with partners, according to a report from Bloomberg.
While specific site locations have not been finalized, Wyoming joins a list of possible destinations that also includes Michigan, Texas, Wisconsin, Georgia, New Mexico, Ohio, and Pennsylvania.
Cheyenne already hosts 10 of the state’s 13 data centers, a concentration driven by several strategic advantages. The city lies along Interstate 80, which is paralleled by a major transcontinental fiber-optic line running from New Jersey to California. This proximity provides the high-speed data connectivity that large-scale centers require.
In addition to fiber access, Cheyenne’s energy infrastructure has made it attractive to developers. Black Hills Energy, the regional power provider, has created data center-friendly rate structures and invested in the infrastructure needed to support high power loads. Elsewhere along the I-80 corridor, limited electrical capacity poses a challenge for similarly scaled development.
“If you had a project requesting a load of 250 megawatts, that’s going to require all brand-new infrastructure,” said Wendy Lopez, recruiting manager for the Wyoming Business Council. “That’s metal poles compared to wooden poles.”
State and local leaders see the prospect of another data center as both a significant opportunity and a topic requiring thoughtful consideration. State Representative Daniel Singh, R-Cheyenne, who chairs the legislature’s Select Committee on Blockchain, Financial Technology, and Digital Innovation, acknowledged public concerns about the potential local impact.
“When it comes to the issue of data centers, there are a lot of concerns, especially with voters in my area to the southeast of Cheyenne,” Singh said. “We need to be cautious of how that will impact the locals.”
Still, Singh noted that data centers could benefit Wyoming’s energy industry by increasing demand for electricity generated from traditional sources such as coal, oil, and natural gas. He also pointed out that modern cooling solutions, such as importing and purifying seawater, could reduce strain on local water supplies.
Cheyenne LEADS board member David Pope expressed optimism about the tech sector’s role in shaping Wyoming’s economic future, suggesting that this kind of investment could position the state as a leader in artificial intelligence and digital infrastructure.
“Wyoming is consistently ranked one of the best, if not the best, state to do business,” Pope said, citing the state’s tax structure, land availability, and energy potential. “The US must remain at the forefront of AI and tech to maintain economic and strategic dominance, and Wyoming can play a pivotal role.”
