House Republicans tout data center rules as lawmakers weigh more limits

The Utah House of Representatives published an overview Tuesday of laws passed in the last two sessions governing data centers and said lawmakers are studying more safeguards during the interim, including local input, community benefits, air quality and water. Citing the Kem C. Gardner Policy Institute, the House said Utah has 48 operating data centers with more than 920 megawatts of capacity, and seven projects under construction are expected to add about 2,600 megawatts. ^[1]

According to the House, SB132 from 2025 requires the Public Service Commission to review contracts for large electricity users and bars shifting the cost of serving them onto other customers. HB76, passed this year, requires new large data centers to report expected water sources before construction and actual annual water withdrawals afterward, with the state posting the figures online. ^[1]

HB507, also passed this year, generally prohibits local governments from offering incentives to large data centers outside a Regionally Significant Development Zone and caps property tax incentives for data centers at generally 60% of new county revenue, with a maximum of 80%, the House said. ^[1]

"One thing that I think we're united on is we do not want a state full of data centers," House Speaker Mike Schultz said in remarks quoted in the post, adding that lawmakers want to understand the right amount of development and its effects on water and the economy. ^[1]