Moratorium on New Data Center Construction in Cheyenne

Cities and counties across the nation, including Cheyenne, Wyoming, are putting a hold on new data center constructions. There’s a petition circulating here, seeking a one-year grace period as the community considers the implications of such rapid development.

Concerns about this issue aren’t new. For instance, there’s skepticism over a recent annexation proposal covering 1,260 acres of ranchland on the city’s west side. Many are questioning if these large-scale data centers will truly benefit us.

What if the existing data center needs more power than the substations can supply?

Currently, Cheyenne operates 12 data centers. When they were established, Black Hills Energy introduced a rate structure where large data users, those consuming over 13 megawatts, had to construct their own substations and handle their own power expenses. This was intended to shield residents and small businesses from rate hikes. Initially, it made sense.

But then there’s the long-term concern: what if our existing data centers start demanding more power than these private substations can provide? If we have to tap into the main power grid, it might strain the very systems meant to protect consumers. Before we greenlight more industry expansion, we need to assess its potential impact on our power grid.

Water usage is another significant topic. Data from the Cheyenne Public Utilities Commission shows that local data centers currently consume about 1.2% of the city’s total water supply. This low figure can largely be attributed to most of these new facilities utilizing closed-loop cooling systems. Still, projections estimate that Cheyenne could be home to anywhere from 40 to 70 data centers someday. Scaling operations to that extent prompts questions about flushing cycles, chemical use, ongoing water consumption, and overall environmental impacts.

These are legitimate concerns, especially for communities in arid regions.

Security is also critical in this dialogue. Loudoun County, Virginia, has over 200 data centers, but its closeness to Washington, D.C., and key federal facilities provides a layer of deterrence absent in Cheyenne. Being one of the more rural states, Wyoming could see densely grouped data centers become appealing targets for malicious entities. Remember, missile sites in our region were intentionally hidden and spread out; concentrating data centers in one area makes them much more vulnerable.

Our agriculture sector, which is essential to both Cheyenne and Laramie County’s economies, also deserves attention. Data centers require at least 225 acres of land. As highlighted by the World Resources Institute, rising land costs from industrial demand may drive up expenses for farmers and ranchers, hastening farmland loss. In 2025, agriculture contributed $163 million to Laramie County’s economy, making it the second highest in Wyoming, according to state data. Undermining this sector could lead to long-term repercussions well beyond the next development phase.

This discussion doesn’t completely dismiss data centers, of course. They play a significant role in national security and economic diversification. Many existing or upcoming facilities in Cheyenne’s business parks are yielding net income.

Ultimately, the pressing question is: How many data centers can Cheyenne sustain without jeopardizing infrastructure, safety, agriculture, or the community’s overall quality of life? To address this, I have proposed a one-year pause on new data center constructions. This halt will allow our officials to better analyze future power and water needs, land usage, and security implications before moving forward with changes that might be irreversible.