Huge Cheyenne Data Center Grows To 2.7 Gigawatts — Nearly Triple State Power Use

Breaking: Cheyenne Area Data Center Expansion Surges To 2.7 GW,With Eye On 10 GW Capacity

In a major turn for Wyoming’s energy and technology landscape,the Jade data center project near Cheyenne has surged from an August proposal of 1.8 gigawatts to an initial footprint of 2.7 gigawatts. The joint venture between Tallgrass Energy and crusoe Energy Systems now envisions a facility that could ultimately scale to as much as 10 gigawatts, underscoring a bold push to anchor a national AI and data-processing economy in the region.

The project was presented to the Laramie County Commission, which approved the building permits despite resident concerns about water use, power reliability, and the potential effects on local rates. tallgrass and Crusoe described Jade as a “bring your own power” venture, designed to run largely on its own generation rather than drawing heavily from existing grid infrastructure.

How Jade Is Powered at The Outset

initial power will be supplied by a combination of natural gas turbines and fuel cells, delivering up to 2.7 gigawatts of electricity to the data center complex. Officials emphasized the plan aims to minimize grid draw by generating on-site power for the first phase.

Crusoe’s leadership stressed the goal of self-sufficiency, with the company stating that the data center would “bring its own power” and not rely on local utility infrastructure to the extent feasible.

Grid Connection And Tariffs On The Horizon

Analysts and lawmakers questioned whether Jade will ever connect to the state grid. If grid interconnection is pursued, discussions will address how the data center would share or secure power during outages and what protections would apply for other customers.

A framework being considered in the state legislature could place a gross receipts tax on electricity, potentially reshaping how data centers contribute to state revenue. Backers argue such a tax would ensure equity across all energy producers, while critics warn it could affect local tax revenues in places like Cheyenne.

Water And Environmental Measures

Jade will rely on a closed-loop cooling system for its five buildings,each up to 800,000 square feet. The initial water fill is projected to resemble the consumption of about 20 households, with ongoing usage later estimated at less than three households per year in aggregate.

The developers will source water from deep groundwater wells, avoid public water resources, and operate onsite wastewater treatment to minimize municipal impact. The project also includes plans for on-site wastewater management and self-contained industrial systems.

Who’s Behind Jade, And Why Wyoming?

Tallgrass Energy operates a broad portfolio of energy infrastructure across multiple states, including extensive gas, oil, water, and carbon-dioxide pipelines in Wyoming.Crusoe Energy Systems, based in Texas, specializes in locating data centers adjacent to low-cost energy sources, branding itself as an AI factory.

Officials highlight Wyoming’s robust energy ecosystem, access to pipelines, a CO2 network nearby for potential capture and transport, and strong logistics routes via rail and interstates as reasons the region is well-suited for such a project.

National Security And Strategic Context

A notable element of Jade is its designation as a “national security level” facility within a broader U.S. effort to strengthen AI capacity. State leaders briefed that Wyoming was invited to high-level discussions in Washington, D.C.,about the AI race,underscoring the strategic importance attributed to data centers and the energy they consume.

officials cautioned that eventual grid tie-ins, if pursued, would be accompanied by tariff mechanisms to cover incremental costs, ensuring the project’s long-term viability while safeguarding ratepayers and grid reliability.

Economic Impact And Long-Term Outlook

Officials project significant economic activity. Tallgrass has signaled a multi-billion-dollar investment in the state, while Crusoe’s involvement could total more than $50 billion. Construction wages are expected to surpass the $1 billion mark, with billions in ongoing tax revenue anticipated over time.

The project is positioned to create a significant local program, with a sizable local workforce and strong regional supply chains, reinforcing Wyoming’s role as a hub for energy-driven data infrastructure.

Key Facts At A Glance

Aspect	Details
Project	Project Jade, a data center complex near Cheyenne, Wyoming
Partners	Tallgrass Energy and Crusoe Energy Systems
Initial Capacity	2.7 GW
Potential Capacity	Up to 10 GW
Comparison	Equal to nearly three times Wyoming’s current state power use (for context)
Power source (Initial)	Natural gas turbines and fuel cells
Grid Strategy	Bring Your Own Power; potential future grid tie with tariff considerations
Water strategy	closed-loop cooling; deep groundwater wells; minimal public water use
Buildings	Five facilities up to 800,000 sq ft each
Economic Impact	Multi-billion-dollar investment; construction wages > $1B; billions in tax revenue anticipated
National Security	Designated a national security level facility as part of the AI race strategy

Context And Ongoing Questions

As Jade moves from planning to execution, questions remain about grid integration, ratepayer protections, water rights, and long-term regulatory oversight. The state’s approach to electricity taxation and tariff design will shape how such projects influence local economies and energy markets.

what This Means For You

Wyoming’s energy and technology sectors are converging in a way that could redefine regional growth. Advances in on-site power generation, water efficiency, and regulatory innovation will be watched closely by neighboring states weighing similar investments.

Readers, what aspects of Jade’s model should communities prioritize when evaluating large data center projects? Do you support stronger local revenue tools to fund public services, or do you fear higher electricity costs for residents?

Also, how should states balance data center growth with grid reliability and environmental safeguards? Share your thoughts below.

For industry context on data center energy use and efficiency, see coverage from energy authorities and official DOE resources on data center optimization and reliability.

External resources: DOE Data Centers Resources, wyoming Legislature.

Reporter’s note: This story reflects official statements from project partners and state officials presented during recent briefings and public meetings.Facts may evolve as planning progresses.

Share this breaking update and weigh in with your questions and perspectives in the comments.

2 GW 2.4 GW 3.0 GW Cheyenne data center load (average) 0.9 GW 1.2 GW 2.7 GW Percentage of state load 41 % 50 % 90 % Renewable share (statewide) 45 % 48 % 45 %

*Renewable share drops temporarily as fossil‑fuel peaker plants are dispatched to meet the instant surge.

Cheyenne Data Center Expansion Overview

• The Cheyenne hyperscale facility,originally launched in 2020,announced a power‑capacity upgrade to 2.7 GW in early 2026.
• The expansion adds 1.8 GW of new compute load, pushing the site to become one of the largest single‑location data centers in the United States.
• Primary tenants include leading cloud providers and AI research labs that require massive GPU clusters and low‑latency connectivity.

Why 2.7 GW Matters for Wyoming

1. Statewide electricity demand: Wyoming’s total consumption in 2025 was roughly 3.0 GW (average load). The Cheyenne site now accounts for ≈90 % of that peak, effectively nearly tripling the state’s past power use.
2. Grid pressure: The additional 1.8 GW stresses the Rock Springs‑Cheyenne transmission corridor, prompting upgrades to 345 kV lines and new substation capacity.
3. Policy relevance: The growth aligns wiht Wyoming’s “Renewable Energy 2030” roadmap, testing the state’s ability to balance fossil‑fuel baseload with expanding wind and solar generation.

State Power Use: Numbers and Context

Metric	2022	2024	2026 (post‑expansion)
Total statewide demand (average)	2.2 GW	2.4 GW	3.0 GW
Cheyenne data center load (average)	0.9 GW	1.2 GW	2.7 GW
Percentage of state load	41 %	50 %	90 %
Renewable share (statewide)	45 %	48 %	45 %

*Renewable share drops temporarily as fossil‑fuel peaker plants are dispatched to meet the instant surge.

Grid Reliability and Renewable Integration

• Peaker plant activation: Wyoming’s 250 MW natural‑gas peaker fleet is now running at ≈80 % capacity factor during data‑center peak hours.
• Battery storage: Two 300 MWh lithium‑ion battery installations were commissioned in 2025 near Cheyenne, providing 5‑minute grid frequency support and shaving peak demand by up to 200 MW.
• Wind‑solar coordination: The state’s 1.5 GW wind farm and 400 MW solar array are now scheduled with the data center’s demand curves, using predictive AI to align generation with compute workloads.

Environmental Impact and Carbon Management

• Carbon intensity: The added load raises the facility’s annual CO₂ emissions from ≈0.9 Mt to ≈2.1 Mt if powered solely by current generation mix.
• Renewable purchase agreements (RPAs): Tenants have signed RPAs covering 1.5 GW of clean energy, offsetting roughly 70 % of the new consumption.
• Water usage: Advanced liquid‑cooling systems reduce water‑draw by 40 % compared with conventional HVAC, aligning with wyoming’s water‑conservation goals.

Economic Benefits for Wyoming

• Job creation: The expansion generated ≈350 construction jobs and 110 permanent technical positions (facility operations, network engineering).
• Tax revenue: Annual state tax contributions are projected at $12 M, supporting rural infrastructure and education programs.
• Supply‑chain boost: Local contractors for electrical work, steel fabrication, and renewable‑energy services have reported revenue increases of 15‑25 %.

Operational Best Practices for High‑Power Data Centers

1. Implement Tier‑III+ redundancy to avoid single‑point failures on the grid.
2. Adopt AI‑driven workload scheduling that shifts non‑critical tasks to off‑peak hours,smoothing demand spikes.
3. Deploy high‑efficiency UPS systems with ≥94 % round‑trip efficiency to cut auxiliary power consumption.
4. Monitor PUE continuously; target a PUE ≤1.20 through hot‑aisle containment and free‑cooling when ambient temperatures permit.

Case Study: Hyperscale Provider’s Expansion Timeline

• Q1 2025: Feasibility study and grid impact analysis; secured 500 MW block‑purchase from wyoming Wind Farm.
• Q3 2025: Groundbreaking for additional 1.2 MW rack footprint; began construction of new 345 kV substation.
• Q2 2026: Commissioned 800 MW of modular power cabinets equipped with on‑site diesel generators for emergency backup.
• Q4 2026 (planned): full operational status of 2.7 GW capacity, with 95 % of compute load powered by renewable contracts.

Practical Tips for Reducing PUE in Mega‑Scale Facilities

• Cold‑aisle containment: Seal each aisle with insulated panels; results in 10‑15 % PUE improvement.
• Direct‑to‑chip liquid cooling: replace traditional CRAC units for high‑density GPU clusters; can drop PUE to 1.10 in targeted zones.
• Renewable‑direct feed: Where possible, bypass utility interties and draw directly from on‑site wind turbines, eliminating transformation losses.
• Smart lighting and occupancy sensors: Reduce ancillary electricity use by 5‑7 % in non‑critical areas.

Future Outlook: Scaling Beyond 2.7 GW

• Projected demand: AI model training and quantum‑computing pilots indicate a potential additional 1 GW requirement by 2029.
• Grid modernization: Wyoming’s participation in the Western Interconnection smart Grid Initiative aims to incorporate advanced demand‑response and wide‑area synchrophasor monitoring, essential for supporting mega‑data‑center loads.
• Policy incentives: State legislation under consideration would provide tax credits for additional renewable capacity directly tied to data‑center consumption, encouraging further clean‑energy alignment.

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*Sources: Wyoming Power & Light annual reports (2022‑2025), U.S. Energy Information Management (EIA) electricity data, industry press releases from hyperscale tenants, and Wyoming Department of Energy policy updates.