Think Data Centers Are All Bad, Utah? Read This…

Utah’s growing resistance to massive data centers is understandable. These facilities can consume enormous amounts of electricity, raise questions about precious water supplies and change the character of rural communities almost overnight.

Understanding the Data Center Debate

But Utah communities considering data center proposals should also recognize something that can get lost in the controversy: there can be substantial benefits when these projects are done right.

The Benefits of Thoughtful Data Center Development

A recent CNN report examining communities transformed by the data center boom shows why the conversation shouldn’t automatically begin and end with “no.” Across the country, billions of dollars in artificial intelligence infrastructure are flowing into places that previously struggled to attract major economic investment.

Success Stories: Ellendale and Eagle Mountain

One example comes from Ellendale, North Dakota, where a massive data center project is reshaping a town of roughly 1,100 people. Local sales tax revenue reportedly jumped from about $400,000 to $3.5 million during the first seven months of 2026. That kind of revenue can pay for roads, utilities, public safety and other improvements that small communities often struggle to afford.

Success Story: Quincy, WA

Quincy, Washington, my hometown, offers perhaps one of the clearest examples of how data centers can strengthen a small community when the economics work in the city’s favor. Microsoft, Yahoo and other major technology companies have built facilities there, attracted in part by inexpensive hydroelectric power. Today, data centers reportedly account for about 75% of Quincy’s property tax revenue, helping support public services and major community investments, including a new medical center that opened in 2025. A Washington Research Council analysis also found that data centers have helped expand the tax base across Central Washington while generating significant construction spending and family-wage jobs. Quincy is not proof that every data center proposal is a good deal, but it is proof that a small community can benefit enormously when it negotiates from a position that protects local taxpayers and turns private investment into lasting public improvements.

That lesson deserves attention in Utah.

Data centers are already a major issue here. Utah has dozens operating, with several more planned, and researchers say the state’s capacity could increase dramatically over the next several years. Economic studies have found potential benefits including construction employment, permanent technical jobs and additional local tax revenue.

Eagle Mountain, Utah

Eagle Mountain offers another Utah example. Despite tax incentives, city officials have said revenue associated with Meta’s data center — including property taxes and taxes connected to electricity use — has become an important source of funding for the community.

None of this means Utahns should ignore legitimate concerns.

Box Elder County’s proposed Stratos project has generated enormous opposition over its potential size, power requirements, water demands and lack of transparency. Hundreds of residents packed meetings earlier this year to protest the project.

Those concerns should force developers to answer tough questions.

But there’s a big difference between demanding responsible development and deciding that every data center is automatically bad.

Demands to Be Met By Data Centers

Communities should negotiate aggressively. Require developers to pay for needed power infrastructure. Protect residential customers from higher utility costs. Demand water-efficient cooling. Require transparency. Negotiate community investments and make sure taxpayers receive a meaningful return.

Collaborative Solutions for a Sustainable Future

Data centers are likely to become part of America’s infrastructure whether Utah embraces them or not. The better question may be: Can Utah build them on Utah’s terms? If communities get the protections right, the answer could come with jobs, infrastructure improvements and millions of dollars in new economic activity.

That’s worth considering before putting up the “No Data Centers” sign.