The contractor change in Google's large data center project in Wyoming has heightened concerns about the selling pressure seen in technology stocks this week. Despite questions about a halt in construction for the 1.8-gigawatt Project Jade, project partners confirm that work is ongoing.
Justin Arnold, head of the Laramie County Planning Department, stated that Google remains the end user of the facility and that a different contractor has now submitted the site plan for the project. Arnold explained that Crusoe was previously responsible for the data center portion, but now another company is preparing a new application under the same project concept.
Arnold did not disclose the name of the company replacing Crusoe. He said it is an engineering firm and noted he was not informed about the reasons for the change.
Work on the project's energy infrastructure is reported to be continuing. It was confirmed that Tallgrass is still building the power center section and that the project is generally progressing according to schedule.
A note from Bank of America on natural gas and electric company Black Hills Corporation also stated that Crusoe's role in the Wyoming project has ended, but the 1.8-gigawatt work is proceeding as planned and the early 2028 service target is maintained.
Crusoe CEO Chase Lochmiller said the company suspended its work on the project due to a customer-related pause. Lochmiller emphasized that the pause was not caused by permitting processes and did not name the customer explicitly.
This development coincided with the selling wave in technology stocks earlier this week. It was noted that $10.8 billion worth of technology stock sales occurred last week, marking the largest outflow in the sector since Bank of America began tracking data in 2008.
The semiconductor index SOX fell about 2% on Tuesday and 3.6% on Wednesday, then rose approximately 8% on Thursday with a recovery in technology stocks. Analysts suggest the pause in Wyoming may have raised questions about demand for data center capacity or financing.
On the Black Hills side, it was stated that the project has not been fully suspended, is progressing as planned, and is expected to be operational by early 2028. Cheyenne LEADS CEO Betsey Hale confirmed the project is moving forward at full speed, noting the new contractor is not yet known and some changes to existing agreements may be necessary.
Google's announcement earlier this month of raising over $84 billion in equity financing also indicated sustained appetite for data center investments. The change in Wyoming is seen as a project-specific restructuring rather than a sector-wide issue.
