Data Centers in Utah

Utah – Cost-Effective & Resilient Western US Hub

Utah is a primary data center market for organizations requiring a cost-effective, disaster-resilient location to serve the Western United States. Its low power costs, significant tax incentives, and strategic position outside major fault zones offer a compelling alternative to coastal markets for production and disaster recovery workloads.

Utah: At A Glance

Network & Connectivity Ecosystem

Utah offers a solid and growing connectivity ecosystem, providing reliable access to both regional and national destinations.

Carrier Density & Carrier Neutrality: The market features over 15 data center providers operating more than 34 facilities, creating a competitive environment for interconnection, as of September 2025. This ensures carrier neutrality and a range of choices for network services.

Direct Cloud On-Ramps: With over 1 on-ramp available, Utah provides direct, low-latency connections to 1 cloud region, as of September 2025. Native access is available for Google Cloud (GCP).

Internet Exchange Points (IXPs): While public peering may be more limited than in coastal hubs, most interconnection occurs via private peering within carrier-neutral data centers. The Salt Lake City Internet Exchange (SLIX) facilitates local traffic exchange, reducing latency for regional users.

Bare Metal: Bare metal server options are readily available in the Salt Lake City area. Providers like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring high performance and direct hardware control.

Power Analysis

Utah's power infrastructure is a key advantage, characterized by low costs and a reliable grid.

Average Cost Of Power: Industrial electricity rates are approximately $0.07/kWh, as of September 2025. This competitive pricing can substantially lower total operational costs compared to other Western US markets. The state's power mix is primarily fossil fuels (82.6%), with a growing renewables sector contributing over 15%.

Power Grid Reliability: The power grid supporting the main data center corridors around Salt Lake City is well-engineered and stable. Facilities commonly offer multi-substation support and redundant power feeds to ensure high levels of uptime.

Market Access, Business & Tax Climate

Utah provides a business-friendly environment with excellent access to regional markets and significant financial incentives.

Proximity To Key Business Districts: Data centers are concentrated in the Salt Lake City metropolitan area, in close proximity to the "Silicon Slopes" tech hub. This allows technology, finance, and enterprise companies to easily access their digital infrastructure.

Regional Market Reach: From its central location in the Intermountain West, Utah can effectively serve end-users in California, the Pacific Northwest, and other major markets like Denver and Phoenix with low latency.

Tax Advantage For Data Centers: Utah offers substantial, data center-specific tax incentives. These programs provide sales and use tax exemptions on equipment, software, and construction, directly reducing the capital expenditure for new builds and major expansions.

Natural Disaster Risk

Utah has a High natural disaster risk profile, with a FEMA National Risk Index score of 94.21, as of September 2025. However, the primary risks are distinct from the coastal threats that affect other Western markets.

The main hazards for data center planning are earthquake, wildfire, severe winter weather, and drought. Other notable risks include riverine flooding, strong winds, and hailstorms. The state's location away from the Pacific coast eliminates concerns related to tsunamis and hurricanes, making it a strategic location for geographic redundancy.