Wyoming opens to data centers, shifts power costs to developers

Governor Mark Gordon signed an executive order on June 3 that opens Wyoming to data center investment while requiring developers to cover the additional power demand their projects create. The order is titled Data Centers the Wyoming Way and directs state agencies to produce implementation recommendations within 60 days.

The order sets state policy on water use, wildlife impacts, grid costs and workforce training. It ties the state directive to a June 2 federal directive on advanced artificial intelligence and outlines eight guiding principles for attracting and overseeing data center projects.

At the center of the order is grid stewardship. The document states that households and small businesses must be protected from costs tied to increased electricity demand and requires developers that drive new power needs to absorb those expenses rather than passing them to residential and small commercial ratepayers.

State agencies were instructed to report back with plans for how to implement the policy; those recommendations are due in early August. Agencies are expected to clarify how to calculate incremental power costs, how to enforce protections for residents and small businesses, and how to balance project siting with water and wildlife safeguards.

The order includes a statement about the state’s role in digital infrastructure and economic development. “Wyoming is an energy-producing state with abundant natural resources, a business-friendly environment, reliable infrastructure, and a proven commitment to innovation, which provides Wyoming a leading role in America’s digital future,” the order reads.

The action comes amid local resistance to large data centers in multiple states. Opponents have raised concerns about noise, higher electricity prices and heavy water use. A March poll found 70% of Americans do not want new AI data centers built in their local area; about half of those opponents cited excessive resource use and 16% cited pollution concerns.

Pressure on data center expansion has reached Congress. In March, Senators introduced legislation seeking a moratorium on AI data center construction. Tech companies have disputed some resource-use claims: Google estimated U.S. data centers account for less than 1% of the water used by households on lawns each year, and Microsoft’s chief executive compared a single facility’s annual water use to that of a restaurant.

The executive order leaves technical details to the agencies’ forthcoming recommendations, which will specify calculation methods, enforcement mechanisms and siting criteria.