CHEYENNE, Wyoming: A new AI data center planned near Cheyenne, Wyoming, is set to consume more electricity than all the state's homes combined, and that's just the beginning. The project could eventually use five times that amount of power, city officials and developers said.

"It's a game changer. It's huge," said Cheyenne Mayor Patrick Collins, announcing the development.

The data center is a joint venture between Tallgrass, an energy infrastructure firm, and Crusoe, a developer of AI computing facilities. It will initially use 1.8 gigawatts of power and could scale up to 10 gigawatts, enough to power up to 10 million homes. Wyoming, by contrast, has a population of just 590,000.

Collins and company officials said the massive energy demand won't burden the local grid. The center will have its own dedicated power from natural gas and renewables.

"This is exciting news for Wyoming and for Wyoming natural gas producers," said Governor Mark Gordon.

Cheyenne has become an increasingly attractive location for data centers, thanks to its cool climate, which helps with server cooling, and abundant, affordable electricity. Wyoming is among the top U.S. energy producers, ranking behind only Texas, New Mexico, and Pennsylvania in net energy output, according to the U.S. Energy Information Administration (EIA).

Wyoming produces around 12 times more energy than it consumes and exports nearly 60 percent of its electricity. Fossil fuels like coal, oil, and natural gas make up a large part of its energy profile.

Microsoft has operated data centers in Cheyenne since 2012. Meta (Facebook's parent company) is nearing completion of a US$800 million facility in the area. The new project by Tallgrass and Crusoe will be located several miles south of Cheyenne along U.S. Route 85 near the Colorado state line.

While the companies haven't confirmed who the end user will be, speculation has swirled around OpenAI. The ChatGPT creator has been scouting sites across the U.S. for its Stargate AI data center initiative, but Crusoe spokesperson Andrew Schmitt declined to say whether this project is part of that effort.

"We are not at a stage where we are ready to announce our tenant there," Schmitt said. "I can't confirm or deny that is going to be one of the Stargate."

OpenAI recently launched the first phase of a Crusoe-built AI data campus in Abilene, Texas, in partnership with Oracle. "To the best of our knowledge, it is the largest data center — we think of it as a campus — in the world," said OpenAI's global affairs chief Chris Lehane.

OpenAI has also signed an agreement with Oracle to add another 4.5 gigawatts of data center capacity and is evaluating other locations. Still, Wyoming has not yet been named among the 16 states under consideration.

Still, Collins believes Cheyenne's time has come. "I believe their plans are to go sooner rather than later," he said.