Project Cosmo coming into focus in Cheyenne

“The name of (the) corporation behind Project Cosmo will be announced this summer,” said Cheyenne Mayor Patrick Collins. “But we are very excited to have this company located in Cheyenne, as they have a proven track record as great corporate citizens and have a reputation of creating a positive environment for economic development.”

The corporation has made a commitment to developing the infrastructure for the entire industrial park, not just its portion. It plans to add sewers, water and roads within the park, as well as building roads to the major thoroughfares in the area. Collins said this will allow other companies that might not be able to afford this infrastructure upgrade to locate in the business park.

Goat Systems LLC is serving as the developer, and Fortis Construction is the general contractor for the project, and has been tasked with hiring contractors and subcontractors. In addition to general construction workers, specialty contractors, such as sheet metal and cooling, will be needed. (Anyone interested in being part of the project is invited to email Wyoming@fortisconstruction.com.)

The anticipated construction timeline is seven to 10 years from the time of groundbreaking this spring to final completion. Collins said Fortis estimates almost 1,200 workers will be involved over this time span.

Housing, water concerns addressed

This large influx of workers and their families into Cheyenne potentially could raise concerns about the availability of housing and services. However, Betsey Hale, CEO of Cheyenne LEADS, explained the construction will be done in phases.

Hale said the first building of the Enterprise Data Center will take around three years to complete, and will be finished before work begins on the second and third. Additionally, while the second building is under construction, the first building will be undergoing upgrading. As a result, not all of the workers will be in Cheyenne at the same time.

“Initially, most of the contractors and subcontractors will only be here for the duration of their involvement in the project. Therefore, we anticipate these workers will live in RV parks and extended-stay hotel/motel rental units, and probably won’t be looking to purchase homes,” Hale said. “Also, the company is committed to hiring as many local contractors and workers as possible, thus preventing a strain on the existing housing market.”

Data centers have traditionally required a large supply of water to cool the servers. Hale said to prevent placing a burden on the city’s water supply, the company locating to Cheyenne is developing an air-cooled system. It is anticipated that Microsoft eventually will adopt this technology for its data centers.

Economic impact

Both Collins and Hale said the location of this company in Cheyenne will have a huge positive economic impact for both the city and the state of Wyoming. Millions of dollars in property tax revenue, sales tax on utilities and franchise fees will be realized.

This doesn’t even account for the sales tax and lodging tax revenue gained from purchases by the construction workers.

“Annually, this and the other data centers located in Wyoming result in over $100 million in gross domestic product. This a game-changer for the state,” Hale said.

The company anticipates a permanent workforce of 200 to 300 workers. Hale said these employees will have high-paying technical jobs, and will be able to afford to purchase single-family homes in and around Cheyenne. She added they will be relocating to Cheyenne 20-30 at a time, and several housing developments are planned and will be completed by the time the need arises.

Why Cheyenne?

When asked why Cheyenne was chosen by the company as the site for its data center, Collins cited several reasons, not the least of which is the major data trunkline running east to west in the city. This ensures reliable internet connectivity.

The initial cost of constructing a data center is substantial, but the ongoing cost of replacing servers is considerable. In 2010, the Wyoming Legislature enacted a sales tax exemption for various computer equipment for data centers that have invested at least $5 million in the state. Companies that invest at least $50 million also receive a sales tax break on power supplies and cooling equipment.

“Another bonus is that Cheyenne’s system of approving projects has been streamlined, allowing us to speed up the work of business. This results in Cheyenne as having a reputation as a positive environment for economic development,” Collins said.

Cheyenne’s climate is also a winning factor. Collins said the area’s mild temperatures and low humidity help decrease the cost of cooling the buildings and equipment. For most of the year, air can be recirculated through the buildings, compared to a location such as Houston, Texas, where air conditioning would be required year-round.

Hale explained the data center will be used for cloud, AI and computing services for the businesses owned by the company developing the project. This is in comparison with Microsoft, which provides these services for its customers.

Although not directly involved in the project, the Greater Cheyenne Chamber of Commerce’s president and CEO, Dale Steenbergen, offered his congratulations to the many partners who have brought this project to fruition.

“Cheyenne LEADS has been instrumental in helping to diversify Cheyenne’s economy away from its focus on government and military,” he noted.

Hale said, “This large project is a message that Cheyenne is a choice community, and we are open for business.”