Wyoming Greenlights Massive AI Data Center Campus Backed by $7 Billion Gas Power Investment
January 8, 2026
In a significant move for the U.S. data center and energy sectors, Wyoming has approved a landmark artificial intelligence data center complex that will be supported by one of the largest dedicated natural gas power generation builds in recent history. The decision underscores the intense power demands of advanced computing and the strategic shift toward on-site, "behind-the-meter" generation for major industrial facilities.
The Laramie County Board of Commissioners unanimously voted on January 5 to approve Project Jade, a proposed AI data center campus by Denver-based Crusoe Energy Systems. Simultaneously, they greenlit the BFC Power and Cheyenne Power Hub, a 2.7-gigawatt natural gas-fired power generation facility to be developed by Tallgrass Energy. Raymon Williams, project director for Tallgrass, stated the energy infrastructure alone represents a $7 billion investment, while the total capital expenditure for the integrated data center campus is likely to exceed $50 billion.
The projects will be situated within the nearly 1,400-acre Switchgrass Industrial Park, approved last October. Planning documents indicate Project Jade will occupy 600 acres, featuring five data center buildings and support facilities. The adjacent 659-acre power hub will house two gas-fired plants. Williams explained the development employs a “bring your own power” model, designed to be “very self-sufficient for our industrial facility,” thereby minimizing strain on local grids and utilities. The complex is architected to eventually scale to a staggering 10 GW of capacity. The BFC Power and Cheyenne Power Hub will utilize a combination of natural gas generation and Bloom Energy fuel cells.
The approval came despite local concerns regarding environmental impacts, such as potential water contamination and the transformation of pastoral landscapes. Developers have committed to drilling into deep aquifers to protect drinking water and implementing closed-loop cooling to reduce consumption.
State leadership strongly endorsed the project, framing it within a national security context. Drew Perkins, Chief of Staff to Wyoming Governor Mark Gordon, highlighted the administration's view, stating, “One of the things that Secretary Burgum shared with us was that this administration believes very, very strongly that if we do not win this … race for AI, that we are conceding leadership and even dominance to China.” Gunnar Malm, chair of the county board, drew a parallel to the region's military history, saying, “For Laramie County to play a major role… like we did with the nuclear deterrence is very, very exciting.”
Officials announced construction will begin shortly, creating up to 5,000 jobs, with the first buildings targeted to be operational by mid-2027. Crusoe Energy, which has developed 3.4 GW of data centers including a major campus for Oracle and OpenAI in Texas, continues to expand its footprint. Tallgrass, a major U.S. pipeline operator, is leveraging its energy expertise to enter the dedicated power generation market.
Source: powermag
