Utah lawmakers take first steps to regulate large-scale data centers

The Utah State Legislature has initiated steps towards regulating large-scale data centers following growing public outcry and an executive order from Governor Spencer Cox. The Economic Development & Workforce Services Interim Committee unanimously voted to open a bill file to define "large-scale data centers" in state code, aiming to establish appropriate policies. Senator Ann Millner, the committee chair, emphasized the need for a thoughtful approach to define these facilities and create a policy framework for Utah's benefit, considering environmental impacts.

This legislative momentum is partly fueled by public opposition to projects like celebrity investor Kevin O'Leary's "Stratos Project" in Box Elder County, which has generated concerns over environmental and quality of life impacts. Lexi Tuddenham, executive director of the Healthy Environment Alliance of Utah, delivered letters to lawmakers urging more regulation and a potential pause on development while a framework is established.

The push for regulation extends to specific proposals from individual lawmakers. Representative Doug Owens plans legislation for mandatory environmental impact studies, while Representative Paul Cutler is drafting a bill for data center guidelines tied to state incentives, particularly focusing on water use in the Great Salt Lake and Colorado River Basins. Box Elder County has already enacted a 180-day moratorium on new data centers. Further hearings are expected, with potential bills to be considered in the 2027 legislative session, unless a special session is called.