A partnership between OpenAI and Oracle could result in the construction of another large data centre in Wyoming.
OpenAI, ChatGPT’s parent company, announced on Tuesday that it will rent 4.5 gigawatts of data centre power from Oracle, which is enough to power 750,000 homes.
Larry Ellison founded Oracle, a computer technology company, in 1977. Oracle Cloud is one of the company’s divisions, and it operates a global network of data centres.
According to Bloomberg, Oracle intends to build additional data centres in collaboration with partners to meet OpenAI’s needs.
Bloomberg added that potential data centre sites include Wyoming, Michigan, Texas, and Wisconsin. According to the report, OpenAI is considering data centre sites in Georgia, New Mexico, Ohio, and Pennsylvania.
The companies have not provided specifics about the potential locations of data centres within the listed states.
Data Centres in Cheyenne
According to DataCenterMap, Cheyenne hosts ten of Wyoming’s thirteen data centres. The others are in Afton, Casper, and Evanston.
If Oracle is considering a Cheyenne location, it represents an opportunity to expand the city’s data centre cluster, Wyoming Business Council Strategic Partnerships Director Ron Gullberg told Cowboy State Daily.
Cheyenne is popular among data centre developers for two reasons.
First, the city is situated along Interstate 80. Union Pacific’s right of way parallels I-80 from Teaneck, New Jersey to San Francisco, and includes a major transcontinental fibre line.
“We tend to think of data centres as needing really good fibre connections and being able to send information along a fibre trunk,” Wyoming Business Council Executive Director Josh Dorrell told Cowboy State Daily in April.
Second, Cheyenne’s power provider, Black Hills Energy, has been a national leader in developing data centre rates. In addition, the company has built the necessary infrastructure to provide power.
Wendy Lopez, the council’s recruiting manager, told Cowboy State Daily in June that the lack of power infrastructure along the rest of I-80 poses a problem for data centre developers.
“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 told me. “Their infrastructure is designed for that. If you have a project that requires 250 megawatts of power, you will need entirely new infrastructure. “That’s metal poles versus wooden poles.”
Another data centre in Cheyenne represents an opportunity, according to State Representative Daniel Singh (R-Cheyenne).
Singh leads 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 data centres, there are many concerns, particularly among voters in my area to the southeast of Cheyenne, about what data centres can do to the community and the types of issues that may arise.
“We need to be cautious of how that will impact the locals.”
Resource Requirements
Water may not be a concern, Singh said.
He suggested that data centres import and purify ocean water for use in cooling computers. According to him, this helps Wyoming’s economy grow while not putting a strain on the state’s water supply.
According to Singh, data centres represent a growth opportunity for Wyoming’s traditional industries, such as coal, oil, and natural gas.
“This is a gold mine opportunity… for coal, oil and natural gas to provide electricity-hungry customers with their product specifically,” Singh told Reuters.
David Pope, a Cheyenne LEADS board member, told Cowboy State Daily that he believes the tech industry has enormous potential 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 several large business parks that already house — or will house — data centres.
“They should invest here,” Pope remarked. “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 helps to strengthen the country’s innovation leadership, according to Pope.
“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,” according to him.
