A partnership between OpenAI and Oracle could lead to the construction of another large data center in Wyoming. 

OpenAI, the parent company of ChatGPT, announced Tuesday it plans to rent 4.5 gigawatts of data center power — enough to provide power to 750,000 homes — from Oracle. 

Oracle is a computer technology company founded in 1977 by Larry Ellison. One of the company’s divisions is called Oracle Cloud, which operates a series of data centers around the world. 

To meet OpenAI’s needs, Oracle plans to work with partners to build additional data centers, Bloomberg reported. 

Sites in Wyoming, Michigan, Texas and Wisconsin are among the potential data center sites, Bloomberg added. OpenAI is considering data center sites in Georgia, New Mexico, Ohio and Pennsylvania according to the report. 

The companies have not been specific about the potential locations of data centers within the listed states. 

Data Centers In Cheyenne

Ten of Wyoming’s 13 data centers are in Cheyenne according to DataCenterMap. The others are in Afton, Casper and Evanston.

If Oracle is looking at a Cheyenne site, it represents an opportunity to grow the city’s cluster of data centers, Wyoming Business Council Strategic Partnerships Director Ron Gullberg told Cowboy State Daily. 

Cheyenne is popular with data center developers for two reasons. 

First, the city lies along Interstate 80. A major transcontinental fiber line is within the right of way used by Union Pacific that parallels I-80 as the route crosses from Teaneck, New Jersey to San Francisco. 

“We tend to think of data centers as needing really good connection to fiber and being able to send information along a fiber trunk,” Wyoming Business Council Executive Director Josh Dorrell told Cowboy State Daily in April. 

Second, the company providing power to Cheyenne, Black Hills Energy, has been a national leader in developing rates for data centers. Also, the company has developed the infrastructure to provide the needed power. 

The lack of power infrastructure along the rest of I-80 is a problem for data center developers, the council’s recruiting manager Wendy Lopez told Cowboy State Daily in June. 

“If you look at any of the communities along I-80 and how much power they’re currently using, it might only be like 20, 50 megawatts worth of power,” Lopez said. “So, their infrastructure is built for that. … If you had a project requesting a load of 250 megawatts, that’s going to require all brand-new infrastructure. That’s metal poles compared to wooden poles.”

Another data center in Cheyenne represents an opportunity, State Rep. Daniel Singh, R-Cheyenne, told Cowboy State Daily. 

Singh chairs the Wyoming Legislature’s Select Committee on Blockchain, Financial Technology and Digital Innovation. 

“I’m glad they’re considering us,” Singh said. “When it comes to the issue of data centers, there a are lot of concerns especially with voters in my area to the southeast of Cheyenne of what data centers can do to the community and what types of issues may come about.

“We need to be cautious of how that will impact the locals.” 

Resource Requirements

Water may not be a concern, Singh said. 

Data centers could import ocean water and purify it to use to cool the computers, he said. That helps grow Wyoming’s economy without straining the state’s water supply, he said. 

Data centers also represent a growth opportunity for Wyoming’s traditional industries like coal, oil and natural gas, Singh said. 

“This is a gold mine opportunity … for coal, oil and natural gas to provide electricity-hungry customers with their product specifically,” Singh said.

Cheyenne LEADS board member David Pope told Cowboy State Daily he sees immense potential for the tech industry to shape the state’s future and that the partnership could help Wyoming become a hub for cutting-edge AI and data infrastructure. 

Cheyenne LEADS owns and operates a number of large business parks that already are home — or will be home — to data centers.

“They should invest here,” Pope said. “Wyoming is consistently ranked one of the best, if not, the best state to do business for its tax structure and business-friendly climate, as well as abundant land and energy potential.” 

Investing in Wyoming and other states also means strengthening the country’s leadership in innovation, Pope said. 

“The U.S. must remain at the forefront of AI and tech to maintain economic and strategic dominance and Wyoming can play a pivotal role,” he said.

Matthew Christian can be reached at matthew@cowboystatedaily.com.