Google has announced a $17 billion investment to build its first data centre in Wyoming, as the technology giant expands its digital infrastructure to meet growing demand for artificial intelligence and cloud computing.

The project, planned for Laramie County near Cheyenne, will be developed in partnership with Tallgrass Energy, Black Hills Energy, American Electric Power (AEP) and Related Digital, Google said in an announcement on Thursday.

The company said the investment would support local economic development, create employment opportunities and contribute hundreds of millions of dollars in property tax revenue for Laramie County and School District 1.

702 MW fuel-cell facility to power data centre

A central component of the project is a planned 702-megawatt fuel-cell power facility using technology developed by US-based Bloom Energy.

Under an agreement with Google, AEP will invest approximately $4 billion in the facility, which is designed to generate electricity using natural gas through an electrochemical process rather than conventional combustion.

The project will incorporate carbon capture and storage (CCS) technology, allowing a large proportion of its carbon emissions to be captured and permanently stored underground at Tallgrass Energy's nearby Eastern Wyoming Sequestration Hub.

Google described the development as the largest planned commercial-scale fuel-cell project of its kind and said it would bring its total contracted carbon capture capacity to nearly one gigawatt.

The company is also sourcing electricity from gas-fired generators operated by Tallgrass Energy and Black Hills Energy. A technical study is underway to assess the possibility of equipping Tallgrass's combined-cycle gas turbines with carbon capture technology.

AEP announced in October that construction of the 702 MW facility was expected to begin in 2026, with full operations targeted by the end of 2028.

Google pledges to minimise water consumption

Addressing concerns over the environmental impact of large-scale data centres, Google said the Wyoming facility would use an air-cooling system to reduce pressure on local water resources.

The company also pledged to pay for all the electricity consumed by the facility and cover infrastructure requirements directly resulting from its expansion.

Water management has been a major issue in discussions with local residents. At a public meeting in Cheyenne in September, Google outlined plans to use a closed-loop, air-cooled system and replenish 120 percent of the freshwater consumed across its operations by 2030.

The company also said it would treat wastewater before discharging it into lined evaporation ponds.

However, residents have raised concerns about the cumulative impact of multiple proposed data centre developments in the area, including their demands on local infrastructure, noise and potential air pollution from backup diesel generators.

Jobs and investment in local communities

Google said the project would generate substantial economic benefits for the region, including property tax revenues and investment in education, workforce development and vocational training.

According to figures previously presented to local residents, the development is expected to support around 2,500 construction jobs at its peak and approximately 250 permanent operational positions.

Google said it had already met with more than 200 residents in Laramie County to discuss their concerns and priorities.

The company and its partners are also establishing a Community Council involving Tallgrass Energy, Black Hills Energy, AEP, Related Digital and Bloom Energy to address the wider impact of data centre expansion on Cheyenne.

AI boom drives demand for new energy infrastructure

The Wyoming investment comes amid a rapid expansion of data centre infrastructure in the United States, driven largely by the growing use of artificial intelligence, cloud computing and other energy-intensive digital services.

Technology companies are increasingly seeking dedicated electricity supplies as existing power grids face constraints and the construction of new generation and transmission infrastructure struggles to keep pace with demand.

Google's Wyoming project illustrates this trend, combining a major data centre investment with a large-scale power generation development and plans for carbon capture.

The company said it would work closely with local authorities, businesses and residents to ensure that the development delivers long-term benefits for the region. (ILKHA)