Overview
Data centers have become one of the fastest-growing forms of commercial and industrial development in the United States. As cloud computing, artificial intelligence (AI), streaming services, online banking, healthcare systems, and digital communications continue to expand, communities are increasingly being approached by developers seeking to construct large-scale data center facilities.
Utah has quickly become one of the nation’s fastest-growing locations for data center development. The state’s relatively inexpensive land, reliable electric system, expanding fiber-optic infrastructure, business-friendly policies, and central location in the western United States have attracted major technology companies and cloud computing providers. As artificial intelligence (AI) accelerates demand for computing power, Utah is transitioning from a regional data center market to one of the country’s major AI infrastructure hubs.
According to recent analyses done by the Kem C. Gardner Policy Institute at the University of Utah in April of 2026, Utah currently has roughly 48 operational data centers with more than 920 megawatts (MW) of operating electrical capacity. An additional 2,600 MW of capacity is under construction, meaning the state’s computing capacity could more than triple over the next several years.
Unlike traditional commercial or industrial developments, data centers typically employ relatively few people once operational, yet they can require significant investments in electrical infrastructure, fiber optic networks, water resources, transportation improvements, and emergency services. Their unique operational characteristics present both opportunities and challenges for local governments.
For planners, planning commissioners, and elected officials, understanding how data centers fit within existing land use regulations is becoming increasingly important. Communities should evaluate whether existing zoning ordinances adequately address these facilities and whether additional standards are needed to protect surrounding properties while encouraging appropriate economic development.
Content Contributors: Jones and DeMille Engineering, Inc, Hansen Planning Group, LLC / Rural Community Consultants
Special Note: This material was developed by civiclinQ for the Land Use Academy of Utah (LUAU). Funding for the development of this material was provided by through the Land Use Training Fund, which is administered by the Office of the Property Rights Ombudsman , utilizing a portion of the 1% surcharge on all building permits in the State of Utah.
The role of this organization in administering funding is primarily administrative and should not be viewed as legal advice. Always consult your legal representative when addressing land use activities.
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