(Substack)—Underscoring the escalating energy demands of artificial intelligence, a massive new data center is set to rise near Cheyenne, Wyoming. This joint project between energy infrastructure firm Tallgrass and AI data center developer Crusoe promises to harness the state’s abundant natural resources while pushing the boundaries of power consumption.
At its initial phase, the facility is projected to devour 15.8 terawatt-hours (TWh) of electricity annually—more than five times the amount used by all of Wyoming’s roughly 590,000 residents combined. When fully scaled to 10 gigawatts (GW), it could consume a staggering 87.6 TWh per year, doubling the state’s entire current electricity generation of about 43 TWh.
The data center, located several miles south of Cheyenne near the Colorado border off U.S. Route 85, represents a significant shift for Wyoming, a state long known for exporting energy rather than consuming it locally. Wyoming produces approximately 12 times more energy than it uses, with nearly three-fifths of its electricity sent to other states. The state’s total electricity consumption hovers around 17 TWh annually, with residential users accounting for just over 3 TWh, commercial sectors about 3.6 TWh, and industrial users dominating at nearly 10 TWh. This new facility’s initial draw alone would represent 91% of Wyoming’s current total consumption across all sectors, highlighting the immense scale of AI-driven infrastructure.
To meet these unprecedented demands without straining the public grid, the project will rely on dedicated on-site generation from natural gas and renewable sources. Wyoming Governor Mark Gordon has hailed the initiative as “exciting news” for the state’s natural gas producers, potentially revitalizing an industry that has faced challenges from shifting energy markets. Cheyenne Mayor Patrick Collins echoes this optimism, anticipating a swift start to construction pending state and local regulatory approvals.
Speculation surrounds the data center’s potential tenants, with whispers linking it to OpenAI’s ambitious Stargate project—a multi-trillion-dollar endeavor to build supercomputers capable of powering advanced AI models. Crusoe, which recently activated a gigawatt-scale facility in Abilene, Texas, in partnership with Oracle for OpenAI, has neither confirmed nor denied involvement in Wyoming. OpenAI has publicly scouted locations across 16 states for expansion but has not explicitly named Wyoming, leaving room for intrigue.
This development is part of a broader trend where AI data centers are reshaping energy landscapes nationwide. Wyoming already hosts facilities from tech giants like Microsoft and Meta, drawn by the state’s cool climate and affordable power. However, the surge in demand raises concerns: the International Energy Agency forecasts that data centers’ electricity and water use could double by 2030, fueled largely by AI. In Wyoming, critics worry about potential hikes in electricity bills for everyday consumers as infrastructure strains to keep pace. Nationally, electricity demand growth has accelerated from 2.6% to 4.7% over the next five years, partly due to data centers.
Yet, proponents argue the benefits outweigh the risks. By creating local demand for Wyoming’s fossil fuels and renewables, the data center could bolster economic growth in a state where energy production is a cornerstone. As AI continues to evolve, projects like this one signal a new era where technology’s hunger for power could transform energy-exporting states into hubs of digital innovation.
Wyoming’s proposed AI data center isn’t just a facility—it’s a harbinger of the energy-intensive future of computing. With consumption figures that dwarf residential needs and potential ties to cutting-edge AI, it positions the Equality State at the forefront of a global tech-energy nexus.
