Jul 28, 2025, 11:24 PM
Jul 28, 2025, 11:24 PM

Wyoming moves forward with world's largest AI data center

Highlights
  • A collaboration between Tallgrass and Crusoe aims to establish a giant AI data center near Cheyenne that would start at 1.8 gigawatts and potentially scale up to 10 gigawatts.
  • Wyoming, a top energy-producing state, generates twelve times more energy than it consumes, yet this project threatens local utility bills and necessitates grid adjustments.
  • Authorities express excitement over the project, while regulatory approvals are pending; construction could begin soon, positioning Wyoming as a hub for future AI infrastructure.
Story

In the United States, a significant development related to artificial intelligence infrastructure has been announced near Cheyenne, Wyoming. The project is a collaboration between Tallgrass, a regional energy infrastructure company, and Crusoe, a developer specializing in AI data centers. This initiative aims to create a data center that will initially require 1.8 gigawatts of electricity, with potential expansion up to 10 gigawatts in the future, which is more electricity than all the homes in Wyoming combined. The scale of this project indicates a major shift in energy demands and technologies utilized in AI. Wyoming is well-known as a leading energy-producing state, primarily due to its substantial coal, oil, and gas resources. In fact, the state generates approximately twelve times more energy than it actually consumes, making it an attractive location for energy-intensive projects such as the new data center. However, despite its energy surplus, the ambitious scale of this facility raises concerns regarding the local electric grid and potential increases in utility bills for residents as utilities adjust to accommodate the requirements of massive data operations. The state’s government has voiced support for the project, indicating that it provides an exciting opportunity for Wyoming's natural gas producers. Governor Mark Gordon has expressed optimism about the project's potential economic benefits while acknowledging the challenges it might impact on the electricity grid. Regulatory approvals will be needed before construction can literally break ground, but local officials believe that construction might commence sooner rather than later. Interestingly, while OpenAI has been exploring sites for an extensive AI data center initiative titled Stargate, a spokesperson for Crusoe declined to confirm whether the Cheyenne project was part of this effort. OpenAI has announced that it has identified over five gigawatts of energy for its upcoming data center capacity, indicating a broad ambition in AI infrastructure development across the country. This comes in the wake of growing demands for AI services, which have necessitated an increase in energy resources and strategic location planning for new data centers.

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