SALT LAKE CITY — The Utah State Legislature took some initial steps to begin regulating large-scale data centers in the state.
On Wednesday, the legislature's Economic Development & Workforce Services Interim Committee voted unanimously to open a bill file to define in Utah State Code exactly what a large-scale data center is.
"We have defined large data centers differently in different parts of code. That means it’s time for us to begin to pull together and developing a policy around defining what a large data center would be, what its function would be, and from there what are the appropriate policies," committee chair Sen. Ann Millner, R-Ogden, told FOX 13 News.
Celebrity investor Kevin O'Leary's plans for a massive data center in Box Elder County has sparked significant public uproar. Lawmakers FOX 13 News has spoken with have said they have definitely heard from constituents with concerns about environmental and quality of life impacts from the Stratos Project and other large data center projects planned in the state.
O’Leary talks new poll, paying for Box Elder County data center:
Some, like Senate President J. Stuart Adams, R-Layton, have found themselves the subject of people's wrath for their support of data centers and it has become an issue in primary election battles. Reacting to the public pushback, Governor Spencer Cox issued an executive order setting some guardrails around data center development in Utah.
"We think these are really good first steps," said Lexi Tuddenham, the executive director of the Healthy Environment Alliance of Utah.
Tuddenham and other members of a coalition of environmental and community groups walked around Capitol Hill on Tuesday, hand-delivering letters to lawmakers that called for more regulation of data center projects.
"We are also asking for a potential pause as we get this framework established," Tuddenham told FOX 13 News. "I think it’s really important the citizens voice be heard. We also know these have huge implications for our future."
On Wednesday, lawmakers took the first steps with the committee's bill file. Sen. Millner said the committee would next hold hearings and take testimony as they explore the benefits and costs of data centers. Environmental impacts would be a significant factor in that, she said.
"It’s time for us to take a thoughtful approach," Sen. Millner said, "making sure we’re putting together the definitions, the policy framework for the good of Utah."
Box Elder County imposes 180-day moratorium on new data centers... with a catch:
Other lawmakers have already started drafting legislation on data centers. Rep. Doug Owens, D-Millcreek, previously told FOX 13 News he was planning legislation to demand environmental impact studies before data centers could be built. Rep. Paul Cutler, R-Centerville, confirmed he was also drafting a bill that would set some guidelines for data centers if they want to collect on any state incentives.
"We want to make sure there are clear guidelines to protect the environment," Rep. Cutler told FOX 13 News. "To make sure that data centers, especially in the Great Salt Lake Basin, the Colorado River Basin, there are strict guidelines on water use."
Hearings on data centers will be scheduled over the legislature's interim period. Any bills would not be considered until the 2027 legislative session begins in January — unless the governor calls a special session.
