Microsoft Secures 3,200 Acres for Massive Cheyenne Data Center Expansion

Microsoft Corp. (Nasdaq: MSFT) announced its intent to purchase approximately 3,200 acres of land in Cheyenne, Wyoming, to develop a new data center expansion on Tuesday, April 14, 2026. This move significantly increases the company’s existing footprint in the region, which dates back to its first data center development in 2012.

The expansion consists of two primary land parcels located southeast of downtown Cheyenne:

Bison Business Park: A 200 acre parcel situated on Wapiti Trail, east of S. Greeley Highway.

Southeast Cheyenne: A 3,000 acre parcel adjacent to the Bison Business Park site.

The project represents the beginning of a multi-year planning and development process. As part of the expansion, Microsoft has committed more than $68 million to current and future off-site infrastructure improvements throughout the city, including roadway, storm sewer, and municipal water infrastructure enhancements.

To support the massive power requirements of the new facility without impacting local electricity rates, Microsoft is collaborating with Black Hills Energy (BKH) under a Large Power Contract Service (LPCS) tariff.

Financial Structure: The tariff requires Microsoft to pay directly for all infrastructure upgrades and power procurement necessary to serve its load.

Rate Protection: This arrangement is specifically designed to ensure that data center operations do not increase electricity prices for existing residential or commercial customers.

Sustainability: Microsoft maintains a global goal of achieving 100% renewable energy coverage. In Wyoming, the company leverages direct evaporative cooling, a technology that uses water for cooling less than 10% of the year.

The expansion is expected to serve as a long term economic driver for Southeast Wyoming. "Microsoft recognizes the strength of our city's workers, infrastructure and economy," stated Cheyenne Mayor Patrick Collins, noting that the project represents the next decade of opportunity and tax revenue for the city.

Current and projected employment figures for Microsoft’s Wyoming operations include:

Existing Workforce: Approximately 220 full time employees are currently based at Microsoft’s Cheyenne facilities.

Construction Phase: The build out is expected to require thousands of skilled tradespeople; nearly 2,000 workers have already participated in building the existing footprint.

Permanent Roles: The expansion is projected to create hundreds of new full time opportunities in information technology (IT), security, and facility maintenance.

Bowen Wallace, Microsoft’s Corporate Vice President of Datacenters for the Americas Region, emphasized that the company has worked to "strengthen, not strain" the Cheyenne community over its 14 year presence in the state.