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Water pollution in Wyoming has big implications for the future of data center development.

Did a Meta data center introduce a rare, dangerous bacteria into the sewers system of Wyoming’s capitol city? It’s an environmental pollution mystery with an answer that could decide the future of American AI infrastructure development.
Our drama begins in Cheyenne, Wyoming, where the city’s board of public utilities just wrapped up a lengthy investigation into the presence of Cupriavidus gilardii, a potentially lethal bacteria resistant to heavy metals, in the city’s wastewater treatment systems. Apparently, in February, board staff detected the contamination and shut off public access to the city’s water reuse system, a supply of treated non-potable water fed with treated wastewater and used for lawns, athletic fields, and other green spaces. Officials were worried that spraying this water could release into the environment a bacteria found to cause fatal health outcomes in immunocompromised or elderly people who are infected by it.
The board then identified a culprit – Goat Systems LLC, a Delaware-registered firm without a website Meta tasked with overseeing its large $800 million hyperscale project in Cheyenne dubbed Project Cosmo. Goat Systems lost its wastewater disposal permit. The board plans to also fine Goat Systems for violating city code “along with additional fees for our remediation efforts,” board public affairs coordinator Erin Lamb told me in an email. (The only person publicly affiliated with Goat Systems is Pamela Gregorski, an employee for a company that specializes in creating LLCs. Gregorski, who is linked to other LLCs handling Meta projects across the country, did not reply to requests for comment.)
In public comments and statements to me, the board linked the bacteria to water used to flush the Meta data center’s closed-loop cooling system so debris could be removed before the facility was operational. “We were able to connect the Meta data center campus to this through sampling their site,” Lamb said.
This finding led Cheyenne to also indefinitely ban data center projects in the city from ever disposing of “fill-and-flush water” in the sewer system again.
Meta has not denied contamination was found by the city, but says repeated sampling at its project site failed to come up with any evidence confirming they were the source. One can imagine a scenario where the data center and its design played no role in this bacteria showing up, or that city officials erroneously tagged the tech company with responsibility at a time when they’re dealing with political troubles already.
But what is happening in Cheyenne, first reported last week by Wyoming local press, will have consequences for the future of AI infrastructure whether or not Meta was actually even responsible. Right now, all over the country, tech companies are failing to get permits for their data centers because people are worried about water use. These closed-loop data center designs are supposed to address those concerns, letting large hyperscalers contain, cycle, and reuse the water they use for months or even years. A story like this gaining traction in public discourse around data centers will inevitably damage the sector’s public image unless rectified – and fast.
Cheyenne’s claims about the Meta data center being responsible for the bacteria have already metastasized on social media, disseminated through channels often cited by data center opponents on the ground elsewhere in the country. “REPORT: ‘RARE’ BACTERIA DISCHARGED INTO WYOMING WATERSHED LINKED TO DATA CENTER,” reads one post by a Facebook user Izzy Bella that has been shared more than 2,600 times. “Think of this the next time you hear blatant greenwashed lies like ‘closed loop cooling.” This post has been shared by major anti-data center groups on Facebook, including Pennsylvania Data Center Resistance, a social media page for organizing against projects in the Keystone State.
Going solely off what happened in Wyoming, some in the state are concerned the process of cleaning these loops before opening a data center can produce some nasty byproducts. Dr. Jonathan Brand, a civil engineering professor at University of Wyoming, has been studying the data center buildout in Wyoming for years, watching what’s happened in Cheyenne closely, and like me has way more questions than answers.
Usually, Brand said, a company using water in metal-intensive industrial applications – think a metal plating facility – has to test that fluid before it’s dumped into a municipal sewer system. The chain of events spelled out by the board left him “guessing that didn’t happen here,” and he’s worried the bacteria formed within whatever petri dish-like environment was created inside the network of looping pipes before it was flushed.
“The bacterium was the canary they saw, but you could have a lot of residual metals, which is not something we normally test for at a wastewater plant,” he said. “What else was in that discharge? Nobody else has let us know that and they’re probably not going to.”
City officials claim the water was tested before it entered the sewer and was missed, but there’s a trust deficit between locals and the government on what happened. Little of this information was public until a few weeks ago. Cheyenne residents first learned trouble was afoot on June 26, when the board posted a press release “reminding all residential, commercial, and industrial customers that the discharge of hazardous substances into the sanitary sewer system is strictly prohibited.” Nothing was included about data centers at all; all the board said was that the bacteria was dumped by “an industrial user within the system.”
Then Exie Brown, a Cheyenne resident and GOP candidate for state house, blasted a press release out on social media declaring “a credible source with knowledge of the [board] investigation and sampling” told him the “industrial user” was a data center.
I reached out to Brown asking how he learned about this. His answers were cryptic. “I was given a piece of paper with that name of a bacteria on it,” he told me over the phone, declining to name the “very credible source” who told him about the contamination. “That it was released into our waste water system, that it came from a data center, that it was Meta, that they found out in February, and I needed to check into this.” When I asked why the piece of paper, he replied: “Because they [the source] wanted to keep this quiet. Off the phones and stuff.”
City officials deny any malintentions behind the delay and claim they’re learning about all of this at the same pace as the average resident. “We learned here a week or so ago,” Cheyenne mayor Patrick Collins told me in an interview. He added this wouldn’t have stirred as much interest “had it been something else,” referencing the fact it was from a data center.
“As I understand it, the contractor that was building the site was flushing out a closed-loop cooling system, and when they tested the water everything seemed to be fine, but when it was released into our system, bacteria had grown and was released into our wastewater treatment,” Collins said. “It just happened to be a data center. It’s an unfortunate and highly regrettable situation.”
The mayor acknowledged this contamination will make it “a little tougher” to argue for more data centers in the city. There are currently 10 operational data centers in Cheyenne and surrounding Laramie County, according to estimates from pro-business group Cheyenne LEADS, which has said five projects are under construction – including the Meta facility – and at least nine others are “in various stages of planning or due diligence.”
On Monday, the Cheyenne city council will vote on whether to annex land owned by various nearby property owners for more data center deals, including parcels owned by the family of U.S. Senator Cynthia Lummis. Before this event, Cheyenne was incredibly resistant to the anti-data center backlash, handily rejecting proposals to pause development.
Collins thinks Cheyenne will still be open to the tech sector. But the bacteria changed things. “I recognize there’s going to be challenges as we move forward. It’s something we’re going to have to look into. This was a regrettable situation that happened.”
We will see more transparency soon from the Cheyenne city government about the contamination. The board tells me it’s planning a press conference next week where Lamb told me “more information will be made available.”
Francis Brennan, a public affairs manager in the company’s strategic response division, provided me with a statement from an unnamed “Meta spokesperson” claiming that Fortis – the construction company hired by Meta and Goat Systems LLC – was directly handling water disposal on site. After the board “shared that it found a substance in the city’s wastewater” the construction company “began hauling it offsite.” Meta claimed Fortis has not been able to corroborate the presence of this bacteria in comparable water samples.
“Meta is committed to being a good neighbor in Cheyenne, including through the protection of local water resources, and will continue encouraging collaboration between Fortis and the board until this situation is revoked,” the statement read. Meta declined to answer follow-up questions..
Fortis confirmed they were responsible for dumping water on site when the contamination was discovered. They stated they’ve been unable to confirm the presence of the bacteria. In a statement provided to me, the company said: “Immediately upon learning of the issue, we stopped discharging water into the city’s wastewater system. We have since engaged in a thorough investigation that has included ongoing repeat testing by independent environmental specialists and have found no trace of the substance.”
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American offshore wind’s existential crisis was laid bare at this year’s Climate Week.
California and New York officials gathered on Tuesday at the New York Bar Association in Manhattan to tell attendees of the annual climate action mega-event about their efforts to hold the Trump administration to account. After Trump regulators upended wind projects off the East Coast and struck buyout trades with energy developers to ditch ocean wind leases, both states filed fresh legal action against the administration, targeting what they said were egregious abuses of taxpayer dollars that canceled once-promising projects that would’ve given gigawatts of power to grids expecting energy demand to spike.
“Every megawatt in offshore wind power is not a megawatt of fossil fuel generated power. That’s really important. That means fewer emissions that contribute to respiratory and cardiac disease,” Lem Srolovic, bureau chief of the New York attorney general’s environmental protection bureau, said at the event, as he and California attorney general Rob Bonta laid out the view that Trump’s actions against offshore wind were illegal.
The federal courts have concurred thus far, and it’s possible more judges will agree. But later in the event, Doreen Harris – CEO and President of the New York State Energy Research and Development Authority – said the quiet part out loud.
“Ultimately, the challenge we have in litigation is that even if successful, we deal with realities of what a commercial entity would do in response to these risks. That remains unresolved,” Harris confessed. “How do we move to an investable future for energy infrastructure if this is the way energy infrastructure has to be advanced?”
Indeed, more litigation clearly isn’t going to help the offshore wind sector’s prospects. As we’ve reported on time and again, the Trump administration has not only used every regulatory lever imaginable – and some once unimaginable – to delay wind farms, both on and offshore. But it has gone beyond the legal, now stalling onshore wind in ways industry says stretches the boundaries of court remedy. If that’s the case on solid ground, what future could possibly exist in the U.S. for an industry that must build entirely in federal waters? And even if Trump leaves office providing for a more industry-friendly president, couldn’t a future successor undo whatever they do as well?
“There may be some hesitancy to reinvest in offshore wind in the U.S. given what has happened in the Trump administration,” Kevin Beicke, vice president of project finance at Morningstar DBRS, told me in a phone interview. This week Morningstar, a leading market analysis firm, agreed with Harris’ assessment and reaffirmed a negative outlook for the entire American offshore wind industry through at least 2028 – adding the future beyond that horizon is essentially unknown.
“It’s my view these companies would need to see some kind of substantial support for their industry if they were to try and get back into it under a future administration. And public support would be needed to support a future administration providing regulatory and financial support to the U.S. offshore wind industry.”
So this begs the question: why are states bothering with litigation they probably know won’t improve the offshore wind sector’s fortunes in the near term?
Harris told me after the event that part of the litigation is to provide a signal to the business community that they shouldn’t abandon the U.S. offshore wind industry in the future.
“Very much so. It’s a move intended not only to preserve the processes and systems that are supposed to apply but also to say, ‘We are here because we are committed to the resource, and we’re committed to the companies developing it, and they can consider a state a partner to realize those outcomes.’ That’s what we want them to understand,” she told me.
Harris’ indignation didn’t surprise me, but it was especially prescient, as New York City’s annual Climate Week chaos became embroiled in a “will they or won’t they” news cycle around Trump’s freeze on wind energy permits. During the offshore wind event, news broke in Politico that President Trump told Interior Secretary Doug Burgum and Energy Secretary Chris Wright that he agreed to “green-light wind energy projects to strike [a] permitting deal” and that they’d “lift” the “blockade of renewable energy projects to get Senate Democrats moving on permitting.” The next day, at Heatmap House, Wright himself declined to speak declaratively on that report, instead signalling the issue was still a live ball. But he said a permitting deal would address concerns about “easier to build everything in America.”
Wright also suggested the administration had actively debated the de facto freeze on height clearances for wind turbines, which has essentially snagged the entire sector. “Wind has been very controversial and there have been spirited dialogues in the administration about this,” Wright told my colleague Robinson Meyer. “I do believe a successful permitting reform thing changes the playing field for anything you want to build in this country, including wind.”
When I asked Harris about the Politico report, she told me she’d rather focus on the courts. The same goes for California Energy Commission chair David Hochschild, who told me he doesn’t believe anonymous reports about a president “who also promised no new endless wars.”
“We want to make it crystal clear we’re going to fight for this and our support [for offshore wind] is going to continue,” Hochschild said. “The legal fight we’re engaged in now is necessary but not sufficient. We have a lot more work to do to build the ecosystem that’s necessary for this to come to fruition. For research and development. For permitting. For infrastructure. It’s a lot of work but we’ve done this before. All these barriers existed when we started with solar in the early days when there was skepticism.”
And more of the week’s top news around project development.
1. Ada County, Idaho – Trump’s push for more data centers on federal lands is causing a lot more ruckus and catching another solar company in the cross-fire.
2. Carbon County, Wyoming – Tell me if you’ve heard this one before: The Trump administration just delayed a large fossil-free power project after criticism from a powerful Republican senator. But this time, it’s hydropower.
3. Crawford County, Wisconsin – Fighting transmission lines in Wisconsin is bipartisan now.
4. Highland County, Ohio – If you want good news, here’s a slightly positive story in Ohio.
A conversation with Tom Matzzie of the Invest in Tomorrow Coalition
This week’s Q&A is with Tom Matzzie, chair of the Invest in Tomorrow Coalition – a pro-renewables Super PAC fighting lawmakers of both sides of the aisle who spurn the sector. The Super PAC won quite a few victories during the primary season, successfully boosting challengers to hardline conservatives in the U.S. that fought for cuts to the Inflation Reduction Act and are no longer going to serve in the Lower Chamber. Matzzie, also CEO of solar firm CleanChoice Energy, is intent the sector must go on offense to win more public bipartisan support and survive the Trump 2.0 era.
I chatted with Matzzie to hear how he’s looking at the general election season. The conversation revealed to me they want the renewables industry to be seen as politically lethal. And they’re paying close attention to the Wisconsin gubernatorial race.
The following conversation was lightly edited for clarity.
So first of all, how is your role going to change as we go into the general elections?
We’re focused on accountability for elected officials who decide they want to attack the clean energy industry, making it harder for us to exist. We have elected officials who say they want to kill projects. Our industry employs hundreds of thousands of people, and we also deploy hundreds of millions in capital, so we look at the attacks on the industry as something that needs accountability.
It’s not about people we just disagree with. It’s about the worst of the worst. And that will continue to be the focus.
We’re not announcing the new races as of yet. But if you look at what we did during the primary season we focused on members of the House Freedom Caucus who had a history of attacking the industry for their own political gain. We also supported a Republican during a primary who was being attacked by the chief NIMBY in her district.
Our M.O. will continue to focus on the House Freedom Caucus and people like them. These ideological trophy hunters on the far right are extremists.
By the end of the month, we’ll announce for sure. It’ll be a five-or-six week campaign towards Election Day.
How many candidates will be targeted?
No more than ten. I feel confident saying that.
Walk me through how you decide the message against these candidates?
The important thing is, we’re crafting a message about the industry. We’re telling a story about us. Whether we’re stronger or to be feared or to be ignored. So to that regard, the effectiveness and lethality of our political apparatus matters a lot.
While many voters care about our issues, in most elections, we’re not the top issues. There’s other things that would be more effective attacks on the incumbent or a way to build up a challenger. We go in, we do message research, we figure out the most efficacious way to move the voters we want to move, and this is the best practice in modern politics is to use data-driven approaches to targeting both voters and the message. What media they consume, how you reach them.
We’re telling a story about us, not just our issues.
As you determine what races to get into, how are you taking into account the whole “data center trojan horse” situation, like what’s happening in Wiscons–
So absolutely, we’re paying close attention to [GOP gubernatorial candidate] Tom Tiffany in Wisconsin, and his smear that every data center means 100,000 acres lost [for solar]. Which by the way, 100,000 acres of solar could probably power most of the upper Midwest. So yeah, we’re paying attention to what Tom Tiffany is saying in his race.
That’s the short way of saying it.
How is the data center backlash and the role it's playing in the midterms affecting your decision-making?
It’s not. We use a data driven approach on what to say, and you follow that approach without much concern because the data is better than rumors on the internet, for lack of a better term.
What we do know is that data centers that embrace solar and wind have received more popular support in those communities. Data centers that have community benefit agreements and more responsible purchase development have received better receptiveness.
If they’re concerned about a data center, they’re going to be even more concerned about natural gas on site. But we don’t see it showing up in the research at this point.
There’s a lot of research [showing] voters care about data centers but affordability is the primary thing showing up in the research as what voters are concerned about.