Microsoft has announced its intent to purchase approximately 3,200 acres of land in Cheyenne, Wyoming, to develop a new datacenter campus, building on the company's existing presence in the city that dates back to 2012.

The announcement marks what the company describes as the beginning of a multiyear planning and development process that will include public hearings and community engagement.

Land Parcels and Location

The proposed expansion consists of two separate parcels in southeast Cheyenne. The first is approximately 200 acres located in Bison Business Park on Wapiti Trail east of S Greeley Highway.

The second is a significantly larger parcel of 3,000 acres in Southeast Cheyenne, adjacent to the first parcel and also accessible through Wapiti Trail. Both sites are located southeast of downtown Cheyenne.

Bowen Wallace, Corporate Vice President for Datacenters in the Americas Region at Microsoft, noted that the company has operated in Cheyenne since its first datacenter opened there in 2012, a span of more than 14 years.

"We're excited to continue our growth in the state, bringing more investment, opportunity, and tax revenue to the community we've been a part of for more than 14 years," Wallace said in the announcement.

Community and Government Response

Cheyenne Mayor Patrick Collins offered support for the expansion, citing the economic benefits the company has brought to the city over more than a decade of operations. "This expansion represents the next decade of opportunity and tax revenue that secures the quality of life that residents of our city enjoy," Collins said.

Microsoft has committed over $68 million in completed and future off-site infrastructure improvements across Cheyenne. Those projects include roadway and storm sewer improvements, trail roadway and greenway improvements, new pump stations, and improved municipal water infrastructure.

The company noted that while these upgrades are critical for datacenter operations, they also serve the everyday needs of Cheyenne residents. The company stated that the announcement represents only the start of a process that involves several steps requiring public hearings.

Microsoft said it welcomes those formal engagement opportunities and is also seeking additional informal channels to hear directly from residents, with a stated goal of aligning development plans and community investments with local values and needs.

Energy and Utility Arrangements

Microsoft and Black Hills Energy have an existing utility partnership in Wyoming structured around the Large Power Contract Service tariff, which requires Microsoft to directly pay for all infrastructure upgrades and power procured by the utility necessary to serve its load.

The company stated this arrangement ensures that its data center development does not increase electricity prices for other customers.

Wes Ashton, Black Hills Energy Vice President of Utilities in Wyoming and South Dakota, described the partnership as one that has been in place for more than a decade.

"Our flexible and innovative tariff provisions allow us to meet Microsoft's expanding energy needs while protecting base retail customers from rate impacts," Ashton said.

On the question of carbon-free energy, Microsoft said it will continue working to bring additional wind and other carbon-free electricity to the Western Electricity Coordinating Council.

The company's stated commitment is to match every kilowatt hour consumed from fossil fuel sources with an equivalent amount of carbon-free energy it procures.

Water Use and Conservation Commitments

Microsoft's existing facilities in Wyoming use direct evaporative cooling to manage heat generated by the chips housed within its datacenters. Under this design, water is used for cooling for less than 10 percent of the year.

The company said its latest datacenter designs go further, in some cases eliminating the need for ongoing water access for cooling after an initial fill.In addition to reducing consumption, Microsoft said it will continue efforts to replenish more water than its operations use.

The company has funded replenishment projects in Cheyenne that, with the assistance of partners including Trout Unlimited, Frog Creek Partners, the Laramie County Conservation District, and the U.S. Forest Service, are expected to restore an estimated 566 million gallons of water. These replenishment efforts are focused on the Mississippi-Missouri and Colorado River Basins.

Jobs and Construction Workforce

Microsoft noted that the construction of the expanded datacenter infrastructure will require thousands of skilled tradespeople. The company said that over the course of building its existing datacenter footprint in Cheyenne, nearly 2,000 skilled workers have already contributed to the development.

The company indicated the new expansion will similarly generate significant construction employment, though it did not provide a specific figure for projected new jobs in the announcement.

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