AI's Energy Surge in Wyoming: A Boon or a Challenge?
In a striking development, plans for a new AI data center in Cheyenne, Wyoming, could see artificial intelligence consuming more electricity than all the homes in the state combined. The announcement was made by Mayor Patrick Collins during a press briefing. This ambitious project, a partnership between the energy infrastructure firm Tallgrass and AI data center developer Crusoe, is set to start with a power utilization of 1.8 gigawatts and could eventually ramp up to a staggering 10 gigawatts.
The implications of this energy demand are profound for Wyoming, the least populous U.S. state. The initial phase of the project alone is expected to consume 15.8 terawatt-hours annually, which is more than five times the current electricity usage of all households in Wyoming combined. At its full capacity, the data center would require 87.6 terawatt-hours annually—double the amount of electricity currently generated across the state.
Given these enormous power requirements, drawing from the public grid is not feasible. Instead, the project plans to utilize dedicated gas generation and renewable energy sources to meet its needs. This change signals a significant shift for Wyoming, a state that typically sends a substantial portion of its generated power to other regions.
Governor Mark Gordon has welcomed the project, noting its potential to boost Wyoming's natural gas industry. He expressed optimism about the project's long-term economic impact.
The proposed location for the data center is a few miles south of Cheyenne, near the Colorado border along US Route 85. While still subject to approval by state and local regulators, Mayor Collins remains hopeful for a swift commencement.
Wyoming has become an attractive hub for data centers, drawing companies like Microsoft and Meta since 2012 due to its favorable climate and energy resources. However, this new initiative by Tallgrass and Crusoe ventures into unprecedented territory.
Intriguingly, there is speculation about the end-users of the computational power, with potential ties to OpenAI's expansive AI infrastructure endeavors. Crusoe has not disclosed its clients, maintaining confidentiality at this stage.
OpenAI is concurrently engaged in significant expansionary efforts, with new data center developments in Texas in collaboration with Oracle and plans to add over five gigawatts of capacity. Yet, Wyoming has not been specifically cited as a prospective site for OpenAI’s future projects.
This burgeoning AI footprint in Wyoming exemplifies both the opportunities and challenges of growing digital infrastructure in less populated regions.
