$1.2 billion data center breaks ground in Cheyenne, promises water-free operations
CHEYENNE, Wyo. — Work has officially begun on Related Digital’s $1.2 billion data center in Cheyenne. Prominent local and state figures joined Related CEO Jeff Blau and other partners at the future center’s 113-acre campus for its official groundbreaking ceremony Tuesday.
Ceremony-goers shuffled into a canvas tent sprung-up among a leveled plain of dirt, while two heavy-duty excavators hoisted a large American flag to serve as a backdrop nearby. Inside, voices hushed to hear featured speakers Gov. Mark Gordon and Cheyenne Mayor Patrick Collins over the distant sound of whirring machinery.
“Wyoming is a solution-oriented place to build,” Gordon told the crowd of state business and energy leaders.
Mark Gordon speaks at Related Digital’s groundbreaking ceremony for a $1.2 billion data center in Cheyenne Oct. 7, 2025 (Garrett Grochowski, Oil City News)
The facility, which will reportedly bolster a total energy capacity of 250 Megawatts, is unique among other existent and upcoming data centers in that it is less reliant on water.
“That’s what’s so exciting about this particular project: to talk about a data center that does not use water,” Gordon said. “Let me repeat that: this is a data center that will not be using water, demonstrating that we can innovate rather than regulate our way into the future.”
Instead, the site will use self-contained cooling systems that will, on average, consume less water than ‘six bathrooms,’ CEO Blau told his crowd. He said that the company’s commitment to water conservation is an example of how Related does things differently.
The facility is designed to deliver digital infrastructure solutions for ai and cloud hyper-scale technology companies. The project is also noted as playing a part in meeting the country’s high-tech national security challenges, a priority repeatedly stressed by President Donald Trump.
For Cheyenne, playing a part in this nationwide effort means more money for the region, Blau said.
“This project will create $250 million in tax revenue for the state of Wyoming and the city of Cheyenne in its first 15 years,” Blau said. Even more money has and will continue to go Cheyenne in the form of permitting revenue.
“And we will create over 700 jobs during construction and 40 well-paying permanent jobs,” Blau added.
Related CEO Jeff Blau at Related Digital’s groundbreaking ceremony for a $1.2 billion data center in Cheyenne Oct. 7, 2025 (Garrett Grochowski, Oil City News)
In the next year, the company and its construction contractors will build a 184,000-square-foot central building with 88 megawatts of critical IT capacity.
In addition to concerns about water consumption and economic opportunity, Blau spoke about nationwide anxieties regarding how much energy data centers like the forthcoming Cheyenne facility consume.
According to Blau, Related Digital will adhere to a tariff system that will reportedly negate any additional energy costs to Wyoming residents.
“This project will pay a tariff that will basically pay for 100% of its cost and ultimately provide infrastructure that, over time, will lower cost of consumer bills in Cheyenne in the state of Wyoming,” Blau said. “That’s the way we enter into communities.”
Collins also spoke about the tariff-oriented solution previously in an August release.
“The tariff, or what data centers pay for electricity, prevents data center expenses from hurting our small businesses and residents by increasing their rates,” Collins said.
“It’s mornings and events like this that make being the mayor of Cheyenne so dang fun,” Collins said. “Getting to stand here with you while a great company breaks ground on an economic development project that will have a huge impact on our community, it really is fun.”
Collins and Cheyenne’s relationship with Related Digital will become even stronger in future years, as Blau said that the company has no intention of just coming to the city, building a data center and leaving.
When Blau had a private dinner with Collins and Gordon the evening prior, he reportedly asked Collins what he thought were some of the larger issues facing the city and its future.
Collin’s answered that affordable housing remains a concern for residents and that repeated efforts to incentivize affordable housing projects have failed to break through legislative barriers.
One particular project would create 184 units of low-cost housing for families, but is held back by lack of funding. Now, however, that mayoral dream may become a reality.
“Today I’m going to announce that we at Related Digital are going to provide $3.5 million of grant money to enable this affordable housing project to start,” Blau said. “This will bring 184 units of affordable housing. That’s the way we enter into communities”
The decision was reportedly made quickly Monday night over a phone call between Blau and his partners. Collins didn’t know about the grant until Blau announced it to the crowd.
“I think, for the first time in my political career, I am speechless,” Collins said.
These units will be designed to cost only 30% of tenets’ income and will open up places that those tenets currently reside in for more families better able to pay the cost of housing.
“This is an amazing gift,” Collins said. “I don’t know what else to say but thank you.”
Based on Related’s ‘vertically integrated’ structure, the company manages nearly all aspects of the data center development and operations process internally. This should hopefully keep costs down and construction timelines in place.
