Why new Utah data centers are building 'off-the-grid' energy
Several planned Utah data centers are preparing to generate or procure their own power because the state’s grid may not have enough capacity to serve their needs. Projects in Millard and Box Elder counties are considering natural gas and solar generation, raising concerns about electricity costs, water use and environmental impacts.
Utah’s growing data center industry is driving developers to pursue “behind-the-meter” or off-the-grid energy supplies as demand outpaces available power. Seven data centers under construction could use nearly three times the energy consumed by Utah’s existing facilities, according to research from the Kem C. Gardner Policy Institute. Projects include Creekstone Energy’s planned facility in Delta, which would use the Kern River Gas Pipeline and solar power, and Kevin O’Leary’s Stratos project in Box Elder County, which would connect to the Ruby Pipeline.
The Utah Legislature approved a law creating an alternative power process for large-load customers, allowing data centers to procure or build their own energy. Utah Office of Consumer Services Director Michele Beck said the law is intended to protect ratepayers from electricity cost increases, although it does not cover natural gas. Researchers and residents, including Bountiful resident Olivia Douglas, remain concerned about potential effects on utility prices, water resources, traffic, quality of life and the environment.