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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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A conversation with Emma Uridge of the Kansas Health Institute.
This week’s conversation is with Emma Uridge, analyst with the Kansas Health Institute. Uridge spent copious hours analyzing state and local laws on data center development to best understand how policymakers are responding to the potential environmental public health impacts of large AI infrastructure, including power and water. The report, which came out this week, also goes in depth into those health impacts. I reached out to her to discuss what she sees as must-watch territory for our readers on this emerging policy arena.
Our conversation was lightly edited for clarity.
What is actually being done on policy when it comes to data centers — beyond moratoria of course?
So first I’d like to just talk about the point of moratoria. It’s helpful to talk about how these policies emerge in the first place. One area where moratoria are helpful is when a data center is proposed but the county has no approach for how they’d like to potentially regulate them. That’s temporary, most of the time. It lets local governments conduct research on the various impacts and also negotiate community benefits, ones that can mitigate any potential negative impacts — like Lancaster Pennsylvania, which instituted a community benefit agreement that maximized the potential benefits of development while mitigating what large data centers can do. That agreement looked at capping municipal water use at 20,000 gallons per day and requiring 100% clean energy. It had financial penalties for non-compliance. The company also committed $20 million to their local economic development and clean energy fund. There are ways to negotiate with developers.
We also see amendments to existing zoning. Data center proposals are increasingly popping up in rural areas, many of which are unzoned, so there’s no way a county can negotiate unless there’s a moratorium in place.
Other policy solutions include different performance standards or requiring on-site renewable energy, like what Jefferson County, Missouri, looked at. Also setback requirements, mandatory noise buffers, ending by-right zoning.
Where are local governments getting ideas for regulating data centers?
A lot of the technical information comes from developers. That can in cases be seen as a biased source of information. I wouldn’t say there’s a dedicated group providing assistance to local governments when a project is proposed — which is a similar story to wind industry development, where we have only a handful of consultants who provide technical advice. It can be really helpful to get a multi-disciplinary approach to hearing information. It can be helpful to have the utility commission, public health folks, those in academia, as well as the developer.
As of right now, especially in rural areas, local governments have a hard task of balancing pushback while getting the most accurate, evidence-based, neutral information to make decisions. That balance can be contentious.
What is the federal government doing on data center policy? How is the Trump administration approaching it?
A few things there. In the early days, the drive was for AI expansion and to be competitive with foreign adversaries. Now due to the amount of public pushback in red and blue localities and a more cautious approach.
I’m not seeing a lot of actual policy movement at this time.
I know the EPA is looking at the chemicals used in cooling data centers because when that water is cycled through the system, some of it is discharged into the water system, so they’re looking at the Toxic Substances and Control Act for monitoring that.
How much of an impact does this minimal federal role have on industry behavior?
Y’know, this isn’t specific to data centers. This is true for all kinds of large-scale development: there’s a need to require some sort of federal monitoring and regulation.
That’s where I see an emerging role for public health. At the federal level, there could be policy movement towards requiring some sort of environmental monitoring at data centers to make sure they’re operating responsibility. Looking at specific water use relative to water availability and what happens when there’s a time of severe, persistent drought. With air quality too — we’ve seen areas where the grid isn’t as reliable so their diesel generators are kicking on more and affecting air quality for residents.
We’re just not seeing all of that right now. We need corporate disclosure.
What do you see as the most important public health impacts from data center development?
It varies by localities. The most discussed obviously is water usage. One thing I’d note about my conversations with folks enthusiastic around emerging tech is, there are still questions that need to be asked about the capacity of localities to support a data center. Like a small town in Kansas may only be using 40% of their water for their utility needs. If a data center came online, how much of that water goes to the data center?
One area underexplored within the public health discipline is energy poverty and energy security. The ability of a household to meet the needs of everything energy provides in our lives. It’s known we have an aging electric grid but we’re not talking enough about large-scale blackouts when the grid is not sufficient to support some of these new data centers.
Plus more of the week’s big development fights.
1. Laramie County, Wyoming — Meta is fighting the fine it received in the Cheyenne data center water pollution controversy, and the conflict between the tech giant and the city’s small board of public utilities is continuing to spill out into the public.
2. Niagara County, New York — This county just rejected a solar project’s highway work permits in a show of retaliation against the state’s Office of Renewable Energy Siting.
3. Barron County, Wisconsin — The anti-solar protest is the new campaign stop in deep red Wisconsin.
4. Chesapeake, Virginia — A large battery storage project on the Virginia coastline is on the rocks amidst rampant local opposition.
5. Lewis County, West Virginia — West Virginia is now a key battleground in the fight over transmission, as a line spanning all of West Virginia and Maryland — and cutting through Data Center Alley in Virginia — causes compounding consternation.
The local government of Boulder City, Nevada had previously rejected a proposal for the computing facility, which would draw power from the existing electricity supply.
The U.S. government for the first time approved a data center on federal lands. What the Trump administration is pitching as a demonstration of bureaucratic speed and ambition in the era of artificial intelligence, however, is turning into the same sort of mysterious backroom deal that’s upsetting other communities.
On Monday, the Bureau of Land Management announced that it would allow a large AI data center to be built on a plot of federal land technically within the limits of Boulder City, Nevada. The approval was initially granted as a right-of-way in 2023 for the second phase of a solar project known as Townsite Solar, to be built by a joint venture between Skylar Opportunities LLC, a subsidiary of Houston energy trader Bill Perkins’ investment firm, and renewables developer Arevon. (Ironically, Perkins also just launched an ETF to profit from higher electricity demand.)
Earlier this year, the LLC overseeing the project — itself named Townsite Solar 2 — notified the city that it would change tack and instead construct a large data center on the site. There would be no new power generation installed — rather, the facility would hook up directly to an existing substation. This time, the backlash was immediate and fierce, and led Boulder City’s planning commission to reject the data center within city limits.
Quietly, Townsite Solar 2 had prepared a backup plan: The project would shift to federal land that was already approved to use for the second phase of the solar farm. It wasn’t until early July that the Boulder City government and its residents learned that BLM had given Townsite Solar 2 permission to advance the data center without any new public hearings or comment periods. According to BLM, the data center would be essentially like a solar farm, so it wouldn’t require any new review.
“The BLM concluded that the new proposed action — a data center — is essentially the same,” city government attorney Brittany Walker told the Boulder City council at a July 14 public hearing. “This is a departure from previous precedent and procedure as the BLM essentially sweepingly approved a new land use without following processes in federal law.”
Boulder City is now fighting the federal assessment. Walker claimed at the July 14 hearing they weren’t notified ahead of time that Townsite Solar 2 would be so quickly approved and built on this parcel of federal acreage, a form of government-to-government communication often required under federal land use planning statutes.
Mystery continues to swirl around what BLM did here — and how Townsite Solar 2 got the agency to do it.
Nada Culver, who served as No. 2 at BLM under the Biden administration, told me that BLM had veered from the usual course of business in approving this data center. Consulting local governments before a decision is made “sits at the heart” of the Federal Land Management and Policy Act, which is the primary statute governing BLM’s land use decision-making, she said. Both that law and the National Environmental Policy Act are “supposed to involve the government actually looking at environmental impacts and sharing them. so it’s not responsible or arguably even legal for the BLM to say, ‘We aren’t going to look at those impacts or share them with the public,” she added.
Boulder City officials have said this is the first major data center approval on federal lands, to their knowledge. Culver told me she believed that to be true, and hadn’t heard of such a thing happening before. “This isn’t a niche BLM issue, so to try and say this is just another use when we’re all surrounded with this loud discussion at the national level about data centers is particularly stark.”
Patrick Donnelly of the Center for Biological Diversity told me his organization and the Sierra Club, another legacy conservation group, are planning a separate legal challenge, one they say is intended to stop more such swaps from happening. Donnelly noted that at least two more data center projects — both powered by on-site gas — are poised to start the federal permitting process at any moment, according to the BLM’s online materials.
“This is the first one, and it’s going to set the stage for these things on public lands, and we can’t let this happen,” he told me.
The timing of this fight couldn’t be worse for the Trump White House, as officials try to pivot towards a “feel your pain” message ahead of the 2026 midterm elections. On Thursday, utilities and data center developers joined Trump cabinet officials at the Environmental Protection Agency for a joint event promoting the administration’s Ratepayer Protection Pledge, a voluntary set of industry practices geared toward ensuring the cost of AI infrastructure isn’t borne by those living near it.
With the BLM’s decision to advance the data center on federal land, Boulder City will lose an estimated $2.3 million in annual leasing and taxation revenue that it would’ve received if the project were built on city land, according to the Las Vegas Review-Journal. If the project is built on BLM land, Boulder City officials have said they’ll still be forced to front the cost for water and sewage hookup to the facility, as well as road maintenance.
Townsite Solar 2 told me in an unattributed statement that it wants Boulder City “to receive the greatest possible revenue and contribution benefits from the project, regardless of siting on federally-owned or city-owned land.”
“TS2 wants the project to provide meaningful, measurable benefits for Boulder City residents, local businesses, and the broader community. Our goal is to develop a responsible, sustainable project that Boulder City can be proud of and that can serve as a national model.”
The people I talked to for this story were largely flummoxed at BLM’s determination that the data center would be “essentially like” the solar farm that was approved in 2023. “These are two unrelated projects,” Culver told me. “I find it very hard to see how this would not trigger the need for a new analysis or public engagement.”
BLM’s logic made my head hurt, too. Among other things, the agency said “both proposals will use the exact same location, same acreage, and same perimeter,” and “both are proposals for industrial uses that will operationalize cutting-edge technologies that are predominantly electrical and solid state in nature.” The agency also claimed the data center was just like the solar farm because construction would take approximately the same amount of time, and would involve facilities and changes that “are visually geometric and less than 30 feet in height.”
You could describe a data center this way, but you could also describe any other number of things this way: a grocery store, a factory, a rollercoaster.
When I asked BLM for comment, a spokesperson simply sent me back the text used in the press release announcing Townsite Solar 2’s data center approval. A press representative for Townsite Solar 2 declined to provide details about who handled government affairs for the data center project, except to say that it hadn’t hired any federal lobbyists.
Some of Trump’s loudest critics told me they think this deal happened because Arevon, a joint partner described as a key financier in the project’s application with Boulder City, hired lobbyists with The Bernhardt Group, a government relations firm created last year by former Trump Interior Secretary David Bernhardt. Arevon hired the firm around the same time Townsite Solar 2 initiated the process to use the federal land for the data center, according to federal disclosures.
I have a history with Bernhardt. After leaving the Trump administration in 2021, Bernhardt went on to run the Trumpworld think tank America First Policy Institute and released a tell-all book, You Report to Me, that called for the bureaucracy to stand down against — as he put it to me — “the interests of the executive.” (I interviewed him around the time of its publication, after which he gave me an unsolicited copy of the book that I keep at my bedside as a form of dark humor.)
These days Bernhardt’s firm represents oil interests, including energy companies, mining, and large-scale agricultural interests that use lots of water (think: almonds). But it’s also pitching itself to the AI energy commentariat. In May, the former Interior secretary authored an op-ed in The Washington Examiner calling for rapid investment in U.S. artificial intelligence infrastructure. He then took to right-wing TV network Newsmax to promote the column, arguing that people fighting to stop data centers were just trying to “oppose the president’s vision for energy dominance.”
It would be easy to point at these federal disclosures and online comments and claim this bizarre data center land use swap is the work of a familiar Trump-era boogeyan. Except Arevon was effusive to me in saying that is not what happened here. In a statement, the company said that it’s a passive member of the joint venture, holds less than 25% ownership stake, and has “not directly hired consultants or lobbyists for this project.”
I didn’t get a response from Overwatch, a data center engineering and design firm contracted to help with the project. Overwatch does have a director of government affairs, but their hire was announced months after the application would have been submitted to BLM.
This leaves us sleuths to conclude the likeliest reason this happened is also the most obvious one: Trump just wants data centers on federal lands, and this was a way to make that happen. What happens next will have enormous implications for the future of data center development and federal land use in the United States, especially if more companies facing federal permit stonewalling seek to turn their solar farm permits into permission to build AI infrastructure.