Massive AI data center proposed near Cheyenne threatens electricity supply for residents

In Wyoming, a new AI data center is set to be constructed near Cheyenne, which will utilize more electricity than all residential homes in the state. This ambitious project, announced by the city’s mayor, aims to begin operations with an electricity capacity of 1.8 gigawatts, with plans to scale up to 10 gigawatts. This center represents a significant collaboration between regional energy infrastructure company Tallgrass and AI data center developer Crusoe, marking a major development in the realm of technology and energy. Given Wyoming’s reputation as a leading energy producer, there are both opportunities and challenges raised by this project, particularly concerning the electricity supply and costs for local consumers. Wyoming ranks as the fourth highest net energy-producing state in the U.S., largely due to its abundant fossil fuel resources including coal, oil, and gas. The proposed data center is noteworthy, as it would operate on dedicated energy derived from both natural gas generation and renewable sources. While the state generates significantly more energy than it consumes, the implications of this new facility are complex. Governor Mark Gordon labeled the development “exciting news” for the state’s natural gas producers, highlighting the economic potential it represents as well. However, the massive energy draw from the data center may lead to increased utility bills for electricity consumers in Wyoming. Local utility companies are preparing their infrastructure for the expected increased demand on the grid caused by the data center's operations. Although state and local regulatory approval is still required before construction can commence, optimistic indications point to the likelihood of a swift start to the project. OpenAI, the organization behind the GPT model series and other AI applications, has been exploring various locations for substantial data center initiatives. Communication from OpenAI suggests the Cheyenne data center could become part of a larger project labeled Stargate, although specific ties to OpenAI have not been confirmed by Crusoe representatives. According to Chris Lehane, OpenAI’s chief global affairs officer, this could become one of the largest data center campuses currently in development globally, emphasizing the profound scale and significance of this undertaking. As OpenAI secures other additional agreements elsewhere for further data centers, it creates potential shifts in energy markets, infrastructure considerations, and ongoing dialogues regarding the balance of renewable and fossil fuel energy utilization.