Google sets aside $17 billion for Wyoming's first data center

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Google is set to spend $17 billion on its first data center in Wyoming. The Laramie County project was announced on Thursday, two days after voters in 40 of 41 local US ballot measures voted to restrict data center projects.The tech giant announced the project in a blog post, where it named Tallgrass Energy, Black Hills Energy, American Electric Power (AEP) and Related Digital as its partners. The company added that it would pay for all the electricity the campus uses. The company would also cover the cost of any power grid upgrades needed to support it.US lawmakers have repeatedly called on big tech companies to take responsibility for these data center costs.Fuel cells to power project instead of turbinesThe project will use a 702-megawatt fuel cell system arranged through AEP and built in the US by Bloom Energy. Unlike turbines, which burn natural gas to produce electricity, fuel cells use a chemical reaction to generate power.AEP stated in October that it would invest about $4 billion in the project under a 20-year deal to supply Google with electricity. The facility is reportedly expected to be fully operational by the end of 2028.The plant’s carbon emissions will be captured and buried underground at Tallgrass Energy’s nearby Eastern Wyoming Sequestration Hub. Google claimed in its blog post that the facility will capture most of the emissions, but exact figures were not stated.The deal brings Google’s total planned carbon capture capacity to almost 1 gigawatt. It builds on a similar agreement the company signed for a gas project in Illinois in October 2025.Air cooling after Cheyenne water scareThe site would use air cooling instead of water to avoid putting extra pressure on local supplies. Water use has become a concern in Cheyenne. The Next Web reported that the city had stopped some data center water discharges in July after a Meta contractor released a rare bacterium into its wastewater system.Black Hills Energy is also supplying power. The utility said on October 6 that it had signed definitive agreements, effective September 30, to serve the site. It also plans to spend $1.8 billion from 2027 to 2029 on 564 MW of natural gas generation.According to Quartz, Black Hills expects service to start in late 2027, reach peak load in 2030, and generate about $150 million in net income that year.Google expects the project to bring hundreds of millions of dollars in property taxes to Laramie County and School District 1. However, the project has also raised concerns among local residents. More than 200 people attended a meeting in downtown Cheyenne to discuss the impact of data center growth on the city, Quartz reported.To address these concerns, Google, its partners, and Bloom Energy plan to set up a Community Council where residents can raise issues and discuss them with the companies.A big bet against the political moodThe timing is very much of note. Just two days before the announcement, voters pushed support for restrictions on data center projects in 40 of 41 local referendums, according to Ballotpedia figures.In Texas, Democrat Gina Hinojosa won the governor’s race after pledging to halt data center construction. Democratic candidates in Georgia, Ohio and Pennsylvania also campaigned on tighter rules for data centers. Wyoming, by contrast, is a Republican stronghold. Trump won more than 70% of the state’s vote in 2024.If you're reading this, you’re already ahead. Stay there with our newsletter.