Why Cheyenne, WY is the Next Data Center Frontier
With hyperscalers, businesses, and AI pioneers vying to create and deploy the next generation of digital workloads, the search for cost-effective, scalable data center capacity is extending beyond historical hotspots. While areas like Silicon Valley, Dallas, and Northern Virginia remain the hubs of global connectivity, new geographies are emerging as the go-to locations due to their ability to deliver on affordability, deployment speed, sustainability, resiliency, and tax advantages.
One such market is Cheyenne, Wyoming, where local leadership, major industry investment, and infrastructure advantages are converging to position the city as the next data center frontier.
A Central Location with National Reach
Cheyenne is only 90 miles north of Denver, one of the nation’s most networked data center hubs. The proximity allows businesses to access the U.S.’s top metros including New York, Los Angeles, Chicago, and Dallas with low latency and reduced costs compared to more congested urban centers.
Cheyenne is strategically positioned at the intersection of several long-distance fiber corridors and metro networks. These routes connect directly to Denver’s carrier hotels and major peering exchanges, delivering the diverse, redundant connectivity required for modern digital platforms. With this ideal position, Cheyenne can provide the reach of a large market coupled with the flexibility and cost savings of an ascendant one.
Why Wyoming is Winning Ground
The pro-business environment in Wyoming is one of the main forces behind the state’s rise as a hub for digital infrastructure. The state is not merely receptive to new development but actively inviting it through a combination of tax incentives, infrastructure investment, and workforce development.
This momentum is fueled by major tech players making significant investments in Cheyenne. Microsoft has invested more than $1 billion in the area since 2012, with multiple expansions at its original location and two additional campuses announced in 2021. The company has prioritized energy efficiency through adiabatic cooling, which reduces water use. In 2024 alone, Microsoft added 250 megawatts of electrical generation to the Cheyenne grid and load-serving substations.
Meta is also making significant moves in Cheyenne, where an $800 million, 715,000-square-foot AI-optimized data center is underway on a 900-acre site in the High Plains Business Park. These investments create strong data gravity, increasing the value of colocating nearby as more data, applications, and infrastructure are anchored in the region.
Wyoming’s naturally cool and dry climate offers another distinct benefit for data center operations. With average July temperatures between 85 and 95 degrees Fahrenheit, and fewer cooling days compared to other regions, Cheyenne supports energy-efficient, high-density computing. The area is also at low risk for natural disasters such as earthquakes and tornadoes, which enhances operational resilience for mission-critical environments.
Financial and Operational Advantages
Wyoming offers one of the most favorable financial environments for data center growth. Qualified projects can access a sales tax exemption of up to 6% on equipment, HVAC systems, and UPS infrastructure. The state also provides $2.25 million in grants to help reimburse utility expenses over three years, along with permit exemptions for facilities located within existing industrial parks, which help reduce costs and accelerate deployment timelines.
To support workforce development, pre-hire training grants are available, and programs such as the Datacenter Academy at Laramie County Community College are helping to establish a skilled talent pipeline for ongoing digital infrastructure growth.
Cheyenne’s expanding renewable energy portfolio, including wind production and large-scale solar projects, adding further appeal to companies focused on sustainability. These advantages make Cheyenne an ideal location for energy-conscious digital infrastructure deployment.
Facility Highlights: Ready to Deploy
Cheyenne’s 1547 facility is designed to enable fast deployment while offering room to grow. With 2 megawatts of total capacity, 1 megawatt is move-in ready today, while the second megawatt is scheduled to come online within the next 8 to 12 months. With two data suites underway, the first 3,900 square foot suite is currently move-in-ready, the second 3,900 square foot suite will be available in eight to 12 months. Both options allow for flexible expansion and tailored deployments.
With this move-in ready infrastructure, organizations can accelerate time-to-market while maintaining control over performance, connectivity, and operational costs.
Who Should Consider Cheyenne
Cheyenne is an ideal location for hyperscalers scaling AI, machine learning, and content delivery workloads, as well as for cloud providers, SaaS platforms, and enterprises running latency-sensitive applications. Its combination of central location, power availability, redundant connectivity, and financial advantages makes it well-suited for high-performance computing, blockchain processing, and disaster recovery environments.
As digital infrastructure demands continue to evolve, Cheyenne offers a forward-looking alternative to traditional markets and a destination ready for what comes next.
Take the Next Step
Whether you’re scaling quickly or diversifying workloads, Cheyenne is proving it’s more than just a stop on the map, it is a strategic move for what’s next.Interested in taking advantage of our move-in ready inventory? Reach out to speak to our team about 1547’s Cheyenne data center.