Cheyenne, Wyoming is set to host a major new AI data center, with a planned capacity of 1.8 gigawatts and the potential to scale up to 10. The project is a joint venture between Tallgrass, a Wyoming-based energy infrastructure firm, and Crusoe, a Texas digital infrastructure company. It will be powered by natural gas and supported by carbon capture technology.
While the location hasn’t been officially disclosed, Mayor Patrick Collins confirmed it will be in Cheyenne.
He noted that data centers are now seeking out the city, attracted by its land availability, fiber access, and business-friendly utilities.
Natural Gas and Renewables to Power AI Expansion
Crusoe will draw from a mix of energy sources, including local natural gas and renewables. Tallgrass will manage carbon dioxide capture and storage.
“Building an American AI factory that can scale to 10 gigawatts of capacity illustrates Crusoe’s commitment to delivering infrastructure at the scale needed for the U.S. to win the global AI race,” said Crusoe CEO Chase Lochmiller, adding that the project will create high-paying jobs in tech, construction, and energy.
Tallgrass CEO Matt Sheehy called the project a natural fit for the company, which has operated in Wyoming for over a decade.
Relevant: Wyoming Carbon Capture Mandate Survives Repeal Attempt
Governor Mark Gordon praised the investment as a product of long-term relationship-building and a win for Wyoming’s energy producers. Cheyenne Chamber CEO Dale Steenbergen said the project could be transformative for Wyoming’s gas sector, which has struggled with low prices and limited demand.
“These industries are growing exponentially, and Wyoming is poised to be an epicenter of that growth thanks in part to the state’s abundant natural resources,” he said.
Many agree that data centers will increasingly rely on gas for stable, scalable energy.
Despite strong interest from tech firms, growth outside Cheyenne is limited by inadequate electrical infrastructure along the I-80 corridor. Many towns can only support 20–50 megawatts — far short of what’s needed for large-scale data centers.
Read more: Prometheus Launches 1.2GW Carbon-Neutral Data Center In Wyoming
