AI stock selloff fuels questions about Utah's data center future after midterms
A selloff in AI-related stocks and election results favoring tighter data center regulation are prompting questions about Utah's future development. Residents in West Jordan oppose a large data center near their homes, citing persistent noise, exhaust and environmental concerns, while officials promote investment and jobs but acknowledge the need for stronger safeguards.
The Nasdaq Composite fell more than 5% after AI-related stocks sold off, raising broader questions about the infrastructure supporting artificial intelligence. In West Jordan, homeowner Alan Smith and other residents said a large data center has replaced views of the Oquirrh Mountains and created near-constant noise and exhaust. They fear tighter restrictions in other states could redirect more projects to Utah.
University of Utah political scientist Josh McCrane said public anxiety reflects uncertainty about the buildings' environmental effects. Brian Mensch, president of Utah Physicians for a Healthy Environment, urged Utah officials to act before more proposals advance and said the state could attract developers because of its relatively limited restrictions. The Utah governor's office cited private investment, tax revenue and jobs as benefits, while Utah Senate President Stuart Adams has supported data center growth but also called for stronger environmental restrictions. In Texas, governor-elect Gina Hinojosa campaigned on a statewide data center moratorium, adding to uncertainty for developers there.