It won't be considered a "mega data center," but it will cost US$112 million to build. Microsoft said initially it will employ 17 people to work there but ultimately it will need 40 people. The facility is expected to open in the spring of 2013.

Microsoft didn't say specifically which of its services it will operate from the data center, which will serve the Mountain West region for the company.

Other Microsoft data centers are located in Quincy, Washington; Chicago; San Antonio, Texas; Southern Virginia; and Dublin, Ireland. Some of the larger facilities have been estimated to cost $500 million to build. In February, Microsoft said it planned to invest an additional $130 million to expand its Dublin data center.

To encourage Microsoft to choose Wyoming, the state gave it $10 million in incentives. As much as $5 million came from the governor's data center recruitment fund and is intended to help Microsoft with infrastructure investments, said Renny MacKay, a spokesman for Governor Matt Mead. An additional $5 million came from the Wyoming Business Council, a government agency designed to support partnerships between public and private entities. That money is also intended to go toward infrastructure improvements, such as fiber connections, MacKay said.

In a statement, Mead said Wyoming is a good place for a data center location because it has affordable energy, redundant fiber optics and a cool climate.