Microsoft announced plans to expand its datacenter operations in Cheyenne, Wyoming, with the intended purchase of approximately 3,200 acres of land as part of a long-term development initiative.
The expansion builds on Microsoft’s existing presence in Cheyenne, where it has operated datacenters since 2012, and is expected to further establish the region as a hub for technology-driven innovation, economic activity, and job creation. The project will span multiple parcels, including land in Bison Business Park and a larger adjacent site in southeast Cheyenne.
The development marks the beginning of a multiyear planning and construction process that will involve public engagement and community input. Microsoft emphasized its commitment to aligning the expansion with local priorities while continuing to invest in infrastructure and community initiatives.
To support the growth, Microsoft has already committed more than $68 million toward infrastructure improvements in Cheyenne, including roads, water systems, and greenway enhancements. These investments are designed to support datacenter operations while also benefiting local residents.
The company also highlighted its approach to energy usage, noting that it will fund the necessary power infrastructure to ensure the expansion does not increase electricity costs for local customers. Through its partnership with Black Hills Energy, Microsoft will directly pay for power procurement and infrastructure upgrades required for its operations.
Sustainability remains a central focus of the expansion. Microsoft plans to match its electricity consumption with carbon-free energy sources and continue efforts to minimize water use. Its datacenter designs already rely on 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.
The project is expected to create significant employment opportunities. Thousands of construction jobs will be generated during the build-out phase, followed by hundreds of full-time roles in IT, security, and facility operations. Microsoft has also partnered with Laramie County Community College to train local workers through its Datacenter Academy, which has already educated more than 1,000 students.
Beyond direct employment, the expansion is expected to contribute to broader economic growth in the region, supporting industries such as power generation, real estate, and retail. Microsoft’s datacenters have already contributed over $11 million in property taxes to Laramie County in 2025, funding public services including schools, hospitals, and parks.
The company also continues to invest in local nonprofits and workforce development programs, having supported dozens of community projects and contributed millions of dollars to regional initiatives since 2018.
The expansion reflects Microsoft’s broader strategy to scale infrastructure supporting artificial intelligence and cloud services, reinforcing its commitment to responsible growth and long-term community engagement.
KEY QUOTES:
“Since the development of our first datacenter in 2012, Microsoft has been working to strengthen, not strain, the community of Cheyenne. We’re excited to continue our growth in the state bringing more investment, opportunity and tax revenue to the community we’ve been a part of for more than 14 years.”
Bowen Wallace, Corporate Vice President, Datacenters-Americas Region, Microsoft
“This is the latest in a long line of investments that Microsoft has brought to the city of Cheyenne as a member of our community since 2012. Microsoft recognizes the strength of our city’s workers, infrastructure and economy. This expansion represents the next decade of opportunity and tax revenue that secures the quality of life that residents of our city enjoy.”
Patrick Collins, Mayor, City of Cheyenne
“We have been a proud partner with Microsoft for more than a decade in Cheyenne, providing energy solutions and mission-critical electric reliability to its data center operations. That 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.”
Wes Ashton, Vice President of Utilities in Wyoming and South Dakota, Black Hills Energy
