With artificial intelligence fueling unprecedented growth across sectors, Wyoming finds itself at the center of a unique challenge and opportunity: meeting the surging demand for electricity.
The state’s energy infrastructure, known for substantial coal, wind, and uranium resources, is now seen as a key potential supplier for AI-driven data centers that require massive amounts of electricity to power server farms for advanced computational processes.
This was a central theme in a recent legislative committee discussion in Cheyenne, where lawmakers explored how best to respond to this increased demand in a challenging utility market. While Wyoming exports over 60% of the electricity it produces, the state is now weighing whether to expand its power output further or diversify its energy sources to support new tech companies setting up data centers in the region.
The shift in demand could influence Wyoming’s energy landscape in several ways. AI-driven power needs may extend the operational life of coal-burning facilities, drive the expansion of wind farms, or even support the re-emergence of Wyoming’s nuclear and uranium industries. Yet, it also raises questions about how this rapid expansion may impact local electric rates and the broader community. Cheyenne, with eight of Wyoming’s 11 data centers, has already felt the pressure of increased electricity consumption, and city officials anticipate that demand could soon triple. Mayor Patrick Collins highlighted agreements between Black Hills Energy and major data centers to keep costs from shifting onto smaller consumers, underscoring the value of tailored agreements for high-demand clients.
Rocky Mountain Power, a major regional utility, has received inquiries to add more than 7,000 megawatts of capacity—an increase comparable to adding another state to its grid. As the industry seeks swift expansions, doubling power demands within a few years, the company’s Government Affairs Director Thom Carter described it as an “arms race” to build infrastructure for the computing power that AI companies are racing to deploy.
Wyo File contributed to this report.
