The wind farm of unknown capacity would be located at Belvoir Ranch, 10km east of the city of Cheyenne.
The agreement, approved by Cheyenne City Council earlier this week, gives the developer Cheyenne Wind five years to go through the study and permitting processes before it begins construction.
The developer has the option to extend the lease for a further five years, but the council would be able to cancel it if the developer is unable to demonstrate sufficient progress.
According to local media reports, the developer estimates the project will cost $750 million to bring into commercial operation by 2016.
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