A High-Plains Test for the Future of AI Energy

Crusoe and Tallgrass plan a Wyoming data campus with intended carbon capture and no confirmed anchor tenant, pointing to a possible new siting model

26 Jul 2025

A bold experiment in how to power the next wave of AI computing is taking shape on the high plains of Wyoming. Crusoe Energy Systems and Tallgrass Energy are pushing ahead with plans for a vast energy and data campus built around natural gas generation supported by intended carbon capture and storage. The site is set to launch with 1.8 gigawatts of capacity and could grow sharply, a scale that has drawn wide industry attention. One question lingers. No anchor tenant has stepped forward.

The project arrives at a moment when AI demand is outrunning the electric grid. Developers face clogged interconnection queues and scarce transmission lines. Many operators are scrambling for firm, round-the-clock power, a requirement that traditional grid resources struggle to meet. Crusoe and Tallgrass aim to sidestep those constraints by pairing a dedicated power supply with underground CO₂ storage rather than waiting for grid upgrades.

Project leaders frame the move as a practical response to mounting pressure. Compute needs are rising faster than utilities can build. Crusoe points to the value of power that can scale with workloads, while Tallgrass notes that Wyoming offers both pipeline access and geology suited for long-term CO₂ storage. Analysts see the approach as part of a broader hunt for flexible, resilient solutions that can support climate goals when carbon capture performs at a high level.

The stakes are clear. Many in the sector are trying to balance reliability with credible emissions progress. A recent Carbon Direct review argued that natural gas paired with carbon capture can serve as a near-term bridge in regions constrained by grid limits. Yet experts warn that carbon capture comes with regulatory hurdles, methane oversight challenges, and hefty capital demands. Its success will hinge on execution, permitting, and steady operation.

If the Wyoming plan holds together, it may offer a new siting model for North America. Developers could gain the option to build where land, cooling, and pipelines already align rather than wait years for grid expansions. With AI workloads surging, the project stands as an early test of whether creative energy strategies can sustain growth without overselling what technology can deliver.