Wyoming is pushing Google, Microsoft and Meta to build more AI data centers in the state

Competition among states to attract data centers is increasing, hundreds of billions of dollars are at stake, and Wyoming is positioning itself as a leading candidate for the next wave of AI infrastructure development.

The Western state’s latest attempt to attract technology investment comes in the form of a two-day behind closed doors event Data x Power top in Jackson, which ends Thursday. It brings together representatives from Microsoft, Meta, Google, Amazon, energy companies and state officials led by Gov. Mark Gordonand academics, according to Cowboy stands daily.

“Wyoming combines ample land, strong power and a stable regulatory environment,” reads the description of the conference co-hosted by the University of Wyoming. “State leadership has positioned it as a testing ground for scalable, energy-secure digital campuses.”

In a statement announcing the event, the summit host said Jacob Hochardthe Knobloch associate professor of conservation economics at the UW Haub School of Environment and Natural Resources, characterized Wyoming as an “energy powerhouse” now entering a new chapter powered by AI.

“By bringing together the innovators building the digital future with those who run and govern it, we honor our land-grant tradition and ensure that the benefits of technology transformation strengthen Wyoming’s economy, workforce and communities for generations to come,” said Hochard.

The move comes after a March report from Blackridge Research and Consulting Wyoming named as one of seven states poised to host part of the expansion Stargate AI project.

The public-private company, jointly managed by OpenAI, Oracle and Softbank, plans to invest $500 billion in building data centers in the US over the coming years to drive AI innovation.

For context, total infrastructure spending, driven by demand for AI, is expected to reach $690 billion this year alone by the industry’s biggest players, including Alphabet, Amazon and Meta.

The growing footprint of data centers

Currently, there are approximately 4,000 data centers across the US, with Virginia claiming the title of the world’s busiest hub, followed by Texas and California, according to World Resources Institute.

But the seemingly insatiable American and global appetite for AI and cloud computing is rapidly expanding the U.S. data center map, with a growing number of states courting tech companies with tax breaks, cheap electricity and favorable regulatory environments.

At the same time, data centers are far from universally popular, as critics argue that these colossal facilities – some the size of several hundred football fields – put enormous strain on local power grids, driving up energy costs for residents. They are also said to use millions of liters of water per day to cool servers and damage the environment through air, noise and heat pollution.

Wyoming is currently home to 21 data centers, with the highest concentration in Cheyenne DataCenterMap.com. This growing hub includes Meta and Microsoft facilities, as well as Crusoe Cloud’s expansive Project Jade campus.

An additional 115-acre campus valued at $1.2 billion will be added under construction by Digitalthat promises to deliver 302 megawatts of critical IT capacity and more than $250 million in tax revenue over 15 years.

Data center boosters in Wyoming argue that the Cowboy State is well positioned to benefit from the AI ​​boom because it is a major energy exporter with a semi-arid, cold climate that dramatically reduces electricity costs for cooling processors.

‘Wyoming exports almost all its electricity’ Paul Bonifasthe summit’s other co-host and director of 9H and GeneCo Datacenters, told Cowboy State Daily. “And consuming it here would mean not letting other states get rich off of industry in Wyoming. The electricity is already being generated, so why not consume it here?”

To those who expressed concerns about the massive water use of data centers, Hochard pointed out that many new facilities use closed water systems that recycle water.

Furthermore, as a state with a low population density, Wyoming offers vast parcels of land near transmission corridors and has no state corporate or personal income tax.

Summit participants emphasized that the economic windfall for Wyoming residents could be transformative.

Bonifas estimated that a 100-megawatt data center campus would generate between $6 million and $10 million a year in state and local tax revenue.

What it means for the Wyoming housing market

Realtor.com® Senior Economic Research Analyst Hannah Jones says the push for investment in Wyoming is likely to put significant upward pressure on home prices and inventories as demand from an influx of higher-earning workers clashes with a housing stock that may not be able to keep up with rapid population growth.

“Buyers ahead of that curve will benefit from appreciation, but locals not in a position to benefit from rising values ​​could be priced out of a market that until recently was one of the most accessible in the region,” Jones warns.

“On the upside, new construction activity is likely to pick up in response to this influx of demand, which could help mitigate the intense pressure from the influx of demand.”

Jones says a big red flag associated with data center construction is the threat of land displacement, with developers outbidding residential buildings on utility-ready lots. The result is a shrinking housing supply and more expensive starter homes.

Latham Jenkinsa real estate agent Living water propertiespoints out that the large-scale, multi-gigawatt projects proposed for Wyoming are largely planned for areas that have been seeking economic diversification for decades and are driven by access to power, land and infrastructure rather than lifestyle amenities.

“Wyoming is uniquely positioned for this type of development,” Jenkins tells Realtor.com. “The state offers abundant and scalable energy, a cool climate that lowers operating costs, large tracts of land and a business-friendly tax structure. That combination is difficult to replicate, which is why you see continued interest from major technology groups.”

In terms of housing, the impact of the data center boom is more nuanced than many expect.

“Construction phases tend to bring a temporary influx of workers, which can tighten rental inventory and put pressure on local housing supply in the short term,” the broker explains. “In the long term, however, data centers are not significant employment drivers relative to their size.”

Echoing summit organizers, Jenkins says the more meaningful impact comes from higher tax revenues and infrastructure investments, while high-paying tech jobs tend to support local housing demand and values ​​over time.

The agent says the response to tech companies’ interest in Wyoming has been largely pragmatic.

“Data centers are recognized as one of the few scalable economic drivers that align with Wyoming’s strengths, especially in energy,” Jenkins explained. “At the same time, there are thoughtful conversations about power use, water and land use, with an emphasis on managing growth responsibly.”