Microsoft Announces Planned 3,200-Acre Land Purchase For Red State Data Center Expansion

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Microsoft on Tuesday announced it intends to purchase approximately 3,200 acres of land in Cheyenne, Wyoming, to expand its data center footprint.

According to Cowboy State Daily, the expansion will “effectively triple its physical footprint in Wyoming’s capital city.”

Cowboy State Daily shared further:

The announcement comes amid simmering debates about data center impacts to energy costs and water usage, as well as what kind of economic development best fits the Cowboy State.

Microsoft officials told Cowboy State Daily on Tuesday that they plan to buy about 3,200 acres on the south edge of Cheyenne, which is roughly 5 square miles.

That will triple Microsoft’s current footprint, which includes 11 operational data centers and three more that are under construction spread across four campuses.

The purchase involves two pieces of land, one 200-acre parcel located in Bison Business Park on Wapiti Trail east of South Greeley Highway, and an adjacent 3,000-acre parcel accessible from Wapiti Trail.

The announcement is a continued commitment to growth in Cheyenne, Microsoft spokeswoman Rima Alaily told Cowboy State Daily. She is vice president and general counsel for Microsoft infrastructure and legal affairs.

“We built our first data center in Cheyenne back in 2012, more than a decade ago,” she said. “At the time, we were really attracted by the city’s high-skilled workforce, its infrastructure and its real, thriving energy industry.

“I think today, the investment that we’re making is really a commitment to continued growth in Cheyenne for those same reasons. They continue to be true.”

“Microsoft has committed over $68M in completed and future off-site infrastructure improvements across Cheyenne. Projects like roadway and storm sewer improvements, trail roadway and greenway improvements, new pump stations, and improved municipal water infrastructure are critical for datacenter operation, but they also make up the infrastructure systems that Cheyenne residents use every day,” Microsoft stated in a release.

“This is the latest in a long line of investments that Microsoft has brought to the city of Cheyenne as a member of our community since 2012,” said Mayor Patrick Collins.

“Microsoft recognizes the strength of our city’s workers, infrastructure and economy. This expansion represents the next decade of opportunity and tax revenue that secures the quality of life that residents of our city enjoy,” Collins added.

Oil City News noted:

According to Microsoft, the company was the City of Cheyenne’s top taxpayer in 2025 and was Laramie County’s second top taxpayer, contributing more than $11 million in local property taxes. The tech giant emphasized that it will not accept local property tax incentives for the new campus.

“We’ve made a commitment nationally that we will not rely on local abatements or incentives as part of our development,” Alaily said, stressing that it is “absolutely critical that the local communities in which we are present do get to see the benefits through tax revenue.”

She added that such revenue can be transformative for community services and institutions like libraries.

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