Big data centers caught Utah flat-footed. Tiny Nephi is one step ahead
Nephi, Utah, proactively established new zoning rules for data centers in 2025, mandating air-cooled systems and city council control over placement, setting an example for other counties in Utah. This approach addresses concerns about water and electricity use while aiming to harness economic benefits. Box Elder and Washington counties are also working to update their land use laws in response to increasing data center interest.
Rural Nephi, Utah, home to 7,300 residents and the seat of Juab County, has taken proactive steps to regulate data center development, contrasting with other Utah counties caught unprepared. In late 2025, Nephi adopted new zoning for data centers, creating an Industrial 4 Zone that mandates the use of air-cooled or closed-loop cooling systems to conserve water, sets guidelines for light pollution, and requires Utah Division of Air Quality permits before city approval. This framework grants the Nephi City Council significant discretion over where large data centers can be located, with potential land annexation from the county for new sites near the Nephi airport.
City Administrator Seth Atkinson highlighted Nephi's advantages, including its community-owned power and natural gas systems, which can provide electricity to data centers without raising local utility costs, with developers bearing any necessary grid upgrade expenses. The city views data centers as a source of property taxes and a catalyst for infrastructure improvements, such as a water pipeline extension.
This proactive stance by Nephi stands in contrast to counties like Box Elder and Iron, which are now scrambling to establish guidelines after issues arose with projects like the "Stratos Project." The Utah Association of Counties, led by CEO Brandy Grace, is facilitating discussions and providing resources to help local leaders navigate data center development, energy, and water use concerns, with many counties considering or enacting temporary moratoriums to allow time for updated land use laws. Washington County's Land Use Authority recently approved zoning amendments that would ban data centers over 50 megawatts and require low-water cooling and noise reduction, with the changes pending consideration by the county commission.
A significant challenge for local governments is the permitting process, where developers often seek building permission before securing air and water quality permits from the Utah Department of Environmental Quality, leading to public concern over unspecified environmental impacts. The Utah Association of Counties plans an event to help county leaders discern facts from misinformation regarding data center water usage, noise, and air pollution amidst differing claims from developers and the public.