Utah officials say state needs to increase energy production

Officials and researchers at a Societal Impact Seminar, hosted by the Gardner Policy Institute on April 15, warned that Utah's power grid must expand significantly to accommodate projected data center growth. Shon Hiatt, a professor at the University of Southern California, stated that Utah's energy needs already exceed production, with eight new data centers slated to open within two years. He noted that national energy demand is growing 2.2 times annually, and the average energy consumption of a single data center has quadrupled since 2010. Concurrently, Utah's "baseline generation" has decreased due to decarbonization efforts, leading to reduced power reserve margins and an increased risk of blackouts by 2029. Rep. Paul Cutler of the Utah Legislature emphasized the challenge of producing more energy cost-effectively. While he mentioned legislative plans to restart a coal plant with "cleaner coal technology," Bill Anderegg, a biological sciences professor at the University of Utah, suggested tapping into the state's high-reliability geothermal resources, particularly in rural and southern Utah. Anderegg also expressed concerns about the environmental impact of powering data centers with carbon-based sources, especially in the Wasatch Front area, which already faces air quality issues. The discussion also covered water usage, with Hiatt explaining that water-based cooling systems can consume up to 2 million liters daily, equivalent to supplying 6,500 households. He noted that 43% of these facilities are in areas with high water stress. Cutler acknowledged the trade-off, stating that reducing water use increases energy consumption by about 18%, and urged for a balance between energy regulation, efficient technology, and environmental protection, particularly concerning water. Economically, data centers were seen as a boon. Hiatt pointed to their high asset value as a potential driver for property tax revenue, while Cutler suggested they could lower residential property taxes by drawing minimally on community assets. Darin Knapp, vice president of Layton Construction, added that data center construction creates thousands of local jobs and requires billions in investment, alongside significant daily logistical needs for workers and materials.