Here's how Utah can navigate the data center boom

Utah is experiencing a major surge in data center development, with seven new facilities projected to add 2,600 megawatts by 2028, significantly boosting its current 48 operational data centers. This rapid expansion, while beneficial for the economy, artificial intelligence, and tech growth, presents considerable challenges, as discussed by experts like Natalie Gochnour of the Kem C. Gardner Policy Institute and Shon Hiatt of the University of Southern California's Zage Business of Energy Initiative. The primary concerns revolve around water usage and electrical grid reliability. Hiatt noted that many hyperscale and colocation facilities rely on evaporative cooling, consuming vast amounts of water – approximately 2 million liters daily for a 100-megawatt center – often in water-stressed regions like Utah's Wasatch Front. Non-evaporative cooling methods are less water-intensive but require more energy, exacerbating grid strain. The National Electricity Reliability Corporation forecasts elevated grid risk for Utah by 2031. Community opposition is also a significant barrier, with common concerns including noise, light pollution, land use, and water consumption. An example cited was the Provo City Council's denial in March of a proposed zoning ordinance change that would have facilitated a new data center in the East Bay neighborhood. Despite these hurdles, state officials like Rep. Paul Cutler (R-Centerville) emphasize the economic upsides, particularly the potential for job creation and increased property tax revenue in rural Utah. Experts suggest that cost-effective power generation and effective public communication about the benefits are essential to navigate the data center boom successfully and mitigate negative policy outcomes.