AI Data Centers: Consuming More Than Homes in Wyoming?
Wyoming may soon experience a seismic shift in its energy consumption landscape, courtesy of a proposed AI data center. This significant development was announced by Cheyenne's Mayor Patrick Collins, who shared that the planned center is set to draw more electricity than is currently used by residences across the entire state. This critical initiative, a partnership between energy firm Tallgrass and AI infrastructure company Crusoe, is poised to start with a colossal capacity of 1.8 gigawatts, potentially reaching 10 gigawatts in the future.
The anticipated energy consumption of this project is nearly unimaginable for Wyoming, a state known for its sparse population. Initially, the center will utilize 15.8 terawatt-hours per year, over five times the electricity consumption of Wyoming households combined. To put it into perspective, this is 91% of the 17.3 terawatt-hours consumed by all sectors in the state each year. Should the center fully scale to 10 gigawatts, it would require a staggering 87.6 terawatt-hours annually, effectively consuming double what Wyoming currently produces.
Faced with the impracticality of sourcing such power from the existing public grid, the data center will leverage dedicated gas generation alongside renewable sources to meet its needs. This self-sustenance marks a fundamental change for Wyoming, a state that typically exports around 60% of its generated power. Governor Mark Gordon has highlighted the positive implications for the local natural gas industry, noting the project as beneficial and exciting for Wyoming's gas producers.
Strategically located a few miles south of Cheyenne and close to the Colorado border, the site awaits regulatory approval, though Mayor Collins is optimistic about the project’s swift commencement. Cheyenne’s established reputation as a hub for major data centers, thanks to giants like Microsoft and Meta since 2012, sets a precedent, yet this new endeavor ventures beyond previous bounds.
Speculation abounds regarding potential tenants of the data center. While no definitive customers have been announced, there is talk of a possible connection to OpenAI’s ‘Stargate’ infrastructure initiative. Although Andrew Schmitt, a spokesperson for Crusoe, has refrained from confirming these speculations, OpenAI's substantial expansions elsewhere hint at a broader strategy.
This monumental project serves as a testament to Wyoming's evolving role in the AI and data center sectors, promising changes to its energy landscape and economic dynamics.
