Microsoft Cheyenne (Logistics Dr) data center, Cheyenne, Wyoming

Microsoft has run data centers in Cheyenne, in Laramie County, Wyoming, since 2012, and its Logistics Drive campus is adding on-site backup power. On April 3, 2026, Wyoming's air quality regulators approved a permit letting Microsoft install 30 natural gas fired engines and two emergency diesel generators there. That followed a July 2025 permit for 128 diesel emergency generators and 128 diesel storage tanks of 13,853 gallons each at the same site.

Eleven days later, on April 14, 2026, Microsoft said it would roughly triple its Cheyenne footprint by buying 3,200 acres southeast of downtown, split between 3,000 acres of raw land and a 200-acre parcel on Wapiti Trail in Bison Business Park. It has also applied to the city for a 385-acre site east of College Drive and a 35-acre site south of Happy Jack Road. Rima Alaily, Microsoft's vice president and general counsel for infrastructure legal affairs, said the company was "really at the very start of the process and still working on the acquisitions."

Microsoft held a public information session at Laramie County Community College in late May 2026, days after city leaders defeated a proposed pause on development. Resident Holly Spagnol asked about emissions, air quality, water and the heat the buildings give off. Company representative Jonathan Noble told the room, "We're taking this responsibility to build out this infrastructure very seriously." Noble said Microsoft works to make sure infrastructure costs for water or power are not shifted onto other ratepayers.

Microsoft says it is not seeking tax incentives for the expansion, pays about $11 million a year in local taxes as the city's largest taxpayer, and that about 500 Cheyenne residents work for it full time. It has committed $68 million to off-site roads, storm sewers, trails and municipal water pumps. The company says Cheyenne's climate needs evaporative cooling only about 37 days a year, and its newer closed-loop systems use no water day to day beyond what staff use.

Cheyenne now has ten data centers running, five under construction and nine more between concept and pre-construction. Microsoft says the first phase of the expansion turns on the city's decisions on its annexation and rezoning applications.