Data Centers in Utah

Utah – Power, Price & Western US Reach

Utah is a primary data center market for enterprises targeting the Western United States that require low-cost, reliable power and significant tax advantages. The state’s infrastructure provides a resilient, low-latency hub for serving customers from California to Colorado, securing critical data while optimizing operational expenses.

Utah: At A Glance

Network & Connectivity Ecosystem

Utah has a solid and expanding connectivity ecosystem, centered around the Salt Lake City metro. It serves as a key intersection for long-haul fiber routes connecting the Pacific Coast with major inland markets like Denver.

Carrier Density & Carrier Neutrality: The state is served by approximately 15 regional and national carriers as of September 2025, with carrier-neutral facilities concentrated in the Salt Lake City area. This provides sufficient choice for building redundant network architectures.

Direct Cloud On-Ramps: Utah hosts over 1 major cloud on-ramp, enabling low-latency access to 1 cloud region as of September 2025. This includes a dedicated point of presence for Google Cloud (GCP), allowing for high-performance hybrid cloud deployments.

Internet Exchange Points (IXPs): The primary public peering point is the Salt Lake Internet Exchange (SLIX), which facilitates local traffic exchange and improves network performance. Most large-scale peering remains private between carriers within local data centers.

Bare Metal: Bare metal server options are readily available from multiple providers. The market is well-suited for companies needing the performance and security of dedicated hardware from vendors like phoenixNAP and Hivelocity.

Power Analysis

Utah's power infrastructure is a significant advantage for data center operators, offering some of the most competitive energy pricing in the United States.

Average Cost Of Power: Industrial electricity rates are approximately $0.07/kWh as of September 2025. This low cost provides a substantial operational expense advantage for high-density computing and large-scale deployments compared to coastal markets. The grid mix is primarily fossil fuels (82.6%), with a growing solar component (11.6%).

Power Grid Reliability: The power grid, particularly in the Salt Lake Valley where most data centers are located, is well-engineered and stable. Major data center facilities are typically supported by redundant substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

Utah combines a business-friendly environment with strategic access to the entire Intermountain West region.

Proximity To Key Business Districts: Data centers are located near the "Silicon Slopes" tech corridor, stretching from Salt Lake City to Provo. This proximity provides low-latency connectivity for a high concentration of technology, finance, and research companies.

Regional Market Reach: From its central location, Utah can effectively serve a large geographic area, including Salt Lake City, Las Vegas, Denver, Phoenix, and Boise. It is an excellent disaster recovery site for businesses with primary operations in California.

Tax Advantage For Data Centers: Utah offers significant tax breaks that directly reduce capital and operational expenditures for data center tenants and operators. The state provides sales and use tax exemptions on equipment purchases, which lowers the total cost of ownership for deploying infrastructure.

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. Site selection and infrastructure design must account for specific regional hazards.

The primary risks include:

• Earthquake: The state lies along the Wasatch Fault, making seismic activity a principal concern.
• Drought: Frequent and severe drought conditions impact water availability and increase fire risk.
• Wildfire: Particularly in foothill and mountain areas, wildfire is a significant seasonal threat.
• Winter Storm: Severe winter weather, including heavy snow and ice storms, can disrupt logistics and power.
• Strong Wind: High wind events are common throughout the state.