Data Centers in Cheyenne
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Cheyenne, Wyoming – Low-Risk, Low-Cost Digital Frontier
Executive Summary
Cheyenne is an excellent market for companies prioritizing low operational costs, a stable risk profile, and favorable tax conditions. While not a primary interconnection hub, its strategic location in the Mountain West makes it a strong choice for disaster recovery, secondary compute sites, and workloads that are not sensitive to single-digit millisecond latency. This market delivers resilience and financial efficiency for critical infrastructure.
Cheyenne, Wyoming: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity suitable for regional and backup workloads. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major hub is Denver; private connectivity is available. |
| Power Cost | $0.07 – $0.09/kWh | Based on a mix heavy in coal (60%) and wind (23%), as of 2024. |
| Disaster Risk | Low (16.64 NRI Score) | Very low exposure to major natural disasters, as of September 2025. |
| Tax Incentives | Yes | Includes significant sales, use, and property tax exemptions for data centers. |
| Sales Tax | 4.00% (state) | Average combined state and local rate, as of 2025. |
Network & Connectivity Ecosystem
Cheyenne provides a solid, though not dense, connectivity environment. It is a secondary market primarily serving regional needs and acting as a satellite to the larger Denver ecosystem.
Carrier Density & Carrier Neutrality: The market features access to over 4 carriers, as of September 2025. Carrier-neutral facilities provide the primary access to regional and national networks, ensuring competitive connectivity options for tenants.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps located within Cheyenne, as of September 2025. Businesses access major cloud providers like AWS, Google Cloud, and Microsoft Azure through dedicated network connections to the primary hub in Denver.
Internet Exchange Points (IXPs): Public peering is not a feature of this market. Interconnection is handled through private peering arrangements within local data centers or routed through major exchange points in Denver.
Bare Metal: Bare metal server options are available from national providers that service edge and secondary markets. Providers like Hivelocity can deploy dedicated servers in regional facilities.
Power Analysis
Wyoming's position as a major energy producer translates into reliable and cost-effective power for data center operations.
Average Cost Of Power: Industrial electricity rates are competitive, estimated between $0.07 and $0.09 per kWh, as of September 2025. This cost advantage, driven by a grid powered by coal and wind, can significantly reduce total operating expenses. The state's energy mix includes 60% coal, 23% wind, and 16% natural gas, as of 2024.
Power Grid Reliability: The power grid is well-engineered to support the state's significant energy sector. Data centers in the area benefit from this sturdy infrastructure, with redundant power feeds available to ensure high levels of uptime.
Market Access, Business & Tax Climate
Cheyenne offers a business-friendly environment with strategic access to the Mountain West region.
Proximity To Key Business Districts: Data centers in Cheyenne are positioned to serve Wyoming's state government, the growing technology sector, and the region's prominent energy industry. It also serves as an ideal disaster recovery location for businesses based in the nearby Denver metropolitan area.
Regional Market Reach: From Cheyenne, digital services can effectively reach populations across Wyoming, northern Colorado, western Nebraska, and western South Dakota with low latency.
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, servers, and software, which dramatically lowers capital expenditures.
Natural Disaster Risk
Cheyenne has a very low natural disaster risk profile, making it a secure location for mission-critical infrastructure.
The region's FEMA National Risk Index score is 16.64, categorized as a "Very Low" risk environment, as of September 2025. The primary environmental risks to consider are winter weather, hail, and wildfire. The area has minimal exposure to catastrophic events like earthquakes, hurricanes, or significant flooding.
