Microsoft’s (MSFT) Data Center Push Continues with 3,200 Acre Wyoming Campus

Microsoft (MSFT) has announced plans to purchase 3,200 acres in Cheyenne, Wyoming, to develop a new data center campus.

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The new data center adds to Microsoft’s footprint in the western U.S. state. Microsoft already has 11 data centers in Wyoming, with three more currently under construction. At the new 3,200 acre site, Microsoft said it is undertaking a multi-year planning and development process.

Microsoft added that it will pay its way to ensure data center development doesn’t increase electricity prices, adding that its partnership with Black Hills Energy (BKH), a natural gas and electric utilities provider, will help to keep costs down.

The AI Buildout

Black Hills’s stock rose 6% following Microsoft’s data center announcement. “We have been a proud partner with Microsoft for more than a decade in Cheyenne, providing energy solutions and mission‑critical electric reliability to its data center operations,” said Black Hills Energy in a news release.

Authorities in Cheyenne, Wyoming have given regulatory approval for a massive 1.8-gigawatt AI data center campus often referred to as the “Cheyenne AI Factory” by local officials. The proposed Microsoft project includes 900 megawatts of power generated by fuel cells, with Bloom Energy (BE) named as a potential fuel cell provider.

Is MSFT Stock a Buy?

Microsoft’s stock has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 34 Buy and three Hold recommendations issued in the last three months. The average MSFT price target of $581.61 implies 56% upside from current levels.