The competition among states to attract data centers is heating up, with hundreds of billions of dollars at stake, and Wyoming is positioning itself as a major contender for the next wave of AI infrastructure development.
The Western state's latest effort to attract tech investment comes in the form of a closed-door, two-day Data x Power summit in Jackson, which concludes on Thursday. It brings together representatives of Microsoft, Meta, Google, Amazon, energy companies, state officials lead by Gov. Mark Gordon, and academics, according to Cowboy State Daily.
"Wyoming combines ample land, firm 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 proving ground for scalable, energy-secure digital campuses."
In a statement announcing the event, summit host Jacob Hochard, the Knobloch associate professor of conservation economics in the UW Haub School of Environment and Natural Resources, characterized Wyoming as an "energy powerhouse" now entering a new chapter driven by AI.
"By bringing together the innovators building the digital future with those who power and govern it, we honor our land-grant tradition and ensure the benefits of technological 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 named Wyoming among seven states poised to host a portion of the expanding Stargate AI project.
Operated jointly by OpenAI, Oracle, and Softbank, the public-private venture looks to invest $500 billion over the next few years to build data centers across the U.S. to help fuel AI innovation.
For context, total infrastructure spending, driven by AI demand, is projected to reach up to $690 billion this year alone by the industry's biggest players, including Alphabet, Amazon, and Meta.
The expanding footprint of data centers
At this time, there are roughly 4,000 data centers scattered around the U.S., 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 U.S. 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 incentives, low-cost electricity, and favorable regulatory climates.
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 immense strain on local power grids, causing utility costs to increase for residents. They are also said to consume millions of gallons 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, according to DataCenterMap.com. This growing hub includes Meta and Microsoft's facilities, as well as the sprawling Project Jade campus by Crusoe Cloud.
An additional 115-acre, $1.2 billion campus is under construction by Related Digital, promising 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 capitalize on the AI boom, being a major energy exporter with a semiarid, cold climate that drastically reduces electricity costs for cooling processors.
"Wyoming exports almost all of its electricity," Paul Bonifas, the other co-host of the summit and director of 9H and GeneCo Datacenters, told Cowboy State Daily. "And consuming it here would mean we’re not letting other states get rich on the back of Wyoming industry. The electricity is already being generated, so why not consume it here?"
To those voicing concerns about data centers' prodigious water use, Hochard pointed out that many new facilities use closed-loop water systems that recycle water.
What's more, as a state with a low population density, Wyoming offers vast land parcels near transmission corridors, and on top of that, it has no state corporate or personal income tax.
Summit participants stressed 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 Wyoming's housing market
Realtor.com® senior economic research analyst Hannah Jones says Wyoming's pursuit of investment is likely to put significant upward pressure on home prices and inventory, as demand from an influx of higher-earning workers collides with a housing stock that may not be able to keep up with rapid population growth.
"Buyers who get ahead of that curve stand to benefit from appreciation, but locals who aren't positioned to capitalize on rising values could find themselves priced out of a market that was, until recently, one of the more accessible in the region," warns Jones.
"On the plus side, new-construction activity is likely to pick up in response to this influx in demand, which can help cool some of the intense pressure from the influx in demand."
Jones says that a major red flag accompanying data center construction is the threat of land displacement, with developers outbidding residential buildings for utility-ready parcels. The result is a shrinking housing supply and pricier starter homes.
Latham Jenkins, a real estate agent with Live Water Properties, points out that the large-scale, multi-gigawatt projects proposed for Wyoming are largely slated for areas that have been seeking economic diversification for decades and are driven by access to power, land, and infrastructure instead of 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 reduces operating costs, large tracts of available land, and a business-friendly tax structure. That combination is difficult to replicate, and it’s why you’re seeing sustained interest from major technology groups."
In terms of housing, the impact from 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," explains the agent. "Long-term, however, data centers are not major employment drivers relative to their scale."
Echoing summit organizers, Jenkins says the more meaningful effect comes from increased tax revenue and infrastructure investment, while well-paying technical jobs tend to support local housing demand and values over time.
The agent says that the response to tech companies' interest in Wyoming has been mostly pragmatic.
"There is recognition that data centers represent one of the few scalable economic drivers aligned with Wyoming’s strengths, particularly in energy," explains Jenkins. "At the same time, there are thoughtful conversations around power use, water, and land use, with an emphasis on managing growth responsibly."
