Microsoft Plans Major Datacenter Expansion in Cheyenne
Microsoft announced plans to purchase approximately 3,200 acres in Cheyenne, Wyoming, for a multiyear datacenter expansion that will add significant construction and permanent jobs to the region.
The company has operated datacenters in Cheyenne since 2012. The new development will span multiple parcels, including land in Bison Business Park and an adjacent site in southeast Cheyenne, marking the largest expansion of the facility since its opening.
Infrastructure and Power Commitments
Microsoft has committed more than $68 million toward infrastructure improvements, including roads, water systems, and greenway enhancements. The company will directly fund power procurement and infrastructure upgrades through its partnership with Black Hills Energy, ensuring the expansion does not increase electricity costs for local customers.
Wes Ashton, Vice President of Utilities in Wyoming and South Dakota at Black Hills Energy, said the partnership "supports economic growth in Wyoming, and our flexible and innovative tariff provisions allow us to meet Microsoft's expanding energy needs while protecting base retail customers from rate impacts."
Jobs and Economic Impact
The project will generate thousands of construction jobs during the build-out phase, followed by hundreds of permanent positions in IT, security, and facility operations. Microsoft has partnered with Laramie County Community College to train local workers through its Datacenter Academy, which has educated more than 1,000 students to date.
Microsoft's existing datacenters contributed over $11 million in property taxes to Laramie County in 2025, funding schools, hospitals, and parks. The expansion is expected to increase these contributions significantly.
Sustainability Focus
Microsoft plans to match its electricity consumption with carbon-free energy sources. The company's datacenter designs use cooling systems that limit water usage to less than 10% of the year, with newer designs aiming to eliminate ongoing water needs entirely.
The company is also investing in water replenishment projects across major U.S. river basins as part of a broader environmental commitment.
Community Engagement
The multiyear planning and construction process will involve public engagement and community input. Patrick Collins, Mayor of Cheyenne, said the expansion "represents the next decade of opportunity and tax revenue that secures the quality of life that residents of our city enjoy."
Since 2018, Microsoft has supported dozens of community projects and contributed millions of dollars to regional initiatives beyond its direct infrastructure investments.
For real estate and construction professionals involved in large-scale projects, understanding how major tech companies approach site selection and community integration can inform strategy. AI for Real Estate & Construction covers property analytics and development planning tools increasingly used in projects of this scale.
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