Data Centers in Cheyenne

Cheyenne – Low-Risk, Tax-Advantaged Colocation

Cheyenne offers a compelling data center market for enterprises focused on operational resilience and total cost of ownership. Its very low natural disaster risk profile, combined with significant sales and use tax exemptions on equipment, creates a secure and financially efficient environment for critical IT infrastructure.

Cheyenne: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Cheyenne is served by 4 providers, offering a focused but capable connectivity environment as of September 2025. The market supports carrier-neutral facilities, allowing for interconnection between multiple networks to optimize cost and performance.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Cheyenne data centers. Businesses connect to major cloud providers via the nearest primary hub in Denver, using dedicated network services like PNI or wavelength circuits for secure, low-latency access.

Internet Exchange Points (IXPs): Public peering is limited within Cheyenne. Most network interconnection is handled privately within colocation facilities or routed through major exchange points in Denver to connect with content delivery networks and other service providers.

Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-intensive applications. Providers like Hivelocity and ColoCrossing can service the region, often deploying custom solutions from facilities in nearby markets.

Power Analysis

Average Cost Of Power: Industrial electricity rates in Cheyenne are competitive, estimated between $0.06 and $0.08 per kWh as of September 2025. This favorable pricing helps reduce the significant operational expense of running high-density compute infrastructure. Wyoming's power mix is dominated by coal (60%) and wind (23%), as of 2024 net generation data.

Power Grid Reliability: The power grid supporting Cheyenne is well-engineered for its industrial users. Data centers in the area are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime for critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Cheyenne serve state government agencies, growing technology companies, and energy sector firms. The location is strategic for businesses requiring a western US presence without the higher costs and risks of coastal markets.

Regional Market Reach: Cheyenne provides effective service coverage for the Mountain West region, including Wyoming, Colorado, Nebraska, and Utah. Its position offers a low-latency connection point for edge computing and content delivery to underserved rural and suburban populations.

Tax Advantage For Data Centers: Wyoming provides one of the most attractive tax climates for data centers in the United States. The state offers a complete sales and use tax exemption on the purchase of data center equipment, which significantly lowers the capital investment required for new builds and expansions.

Natural Disaster Risk

Cheyenne has a very low natural disaster risk profile, with a FEMA National Risk Index score of 16.64 out of 100 as of September 2025. This rating makes it an excellent choice for disaster recovery and primary production sites where uptime is essential.

Key risks to consider are primarily weather-related and include:

• Cold Waves
• Hail
• Landslides
• Wildfire
• Winter Weather