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By Glaucileine Vieira
Tallgrass and Mitsubishi Power Americas are developing a large-scale energy project in Wyoming to support growing demand from AI and hyperscale data centers. The companies have announced the delivery location for the first two Mitsubishi M501JAC gas turbines that will support Phase 1 of the Cheyenne Power Hub in southeast Wyoming. The Cheyenne project reflects a growing shift toward dedicated AI energy hub developments designed to avoid placing additional pressure on regional electricity grids.
The project will deliver around 1,150MW of site-ready power. Tallgrass will supply natural gas through its Rockies Express Pipeline. The Cheyenne Power Hub is expected to support a major data center development inside the Switchgrass Industrial Park and represents an investment of more than $7bn.
For eeNews Europe readers, the project highlights how AI infrastructure is increasingly driving investment in dedicated power generation and grid-independent energy systems. At the same time, the project reflects a broader industry trend. Energy companies are combining existing gas infrastructure with renewable energy and carbon capture technologies to meet rising electricity demand.
According to the companies, the Cheyenne Power Hub will reduce pressure on the local grid. Instead, it will supply dedicated on-site power directly to the data center campus.
Tallgrass says this approach should help reduce the impact of large-scale AI and cloud computing facilities on local electricity networks and ratepayers. At the same time, the project includes a planned grid interconnection that could support future renewable integration.
The location also sits close to Tallgrass’ Trailblazer carbon capture and sequestration project, which the company describes as one of the largest operating CCS projects in the United States. As a result, the site could support future decarbonization efforts as AI energy demand continues to grow.
The two Mitsubishi M501JAC gas turbines are expected to begin arriving as early as July. Mitsubishi Power says the systems will provide high-efficiency power generation using existing pipeline and storage infrastructure.
“This milestone reflects the strength of collaboration between Tallgrass and Mitsubishi Power to deliver reliable, scalable power where it’s needed most,” said Bill Newsom, President and CEO, Mitsubishi Power Americas. “By combining advanced turbine technology with existing pipeline and storage assets, the Cheyenne Power Hub is purpose-built to support critical digital infrastructure while positioning Wyoming for long-term economic growth.”
The project is also expected to create more than 100 long-term local jobs.
As demand for AI computing capacity accelerates, energy availability is becoming a growing challenge for data center operators worldwide. Projects such as the Cheyenne Power Hub show how utilities and infrastructure companies are increasingly turning to dedicated generation systems to secure reliable power for next generation digital infrastructure.
Cover photo: Mitsubishi Power Americas/Tallgrass
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