Utah has experienced rapid data center growth due to its low-cost electricity from hydroelectric and coal power plants, competing with Texas as a major data center hub in the western United States.
Referenced in 5 briefingsLast referenced: April 16, 2026
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April 16, 2026
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Utah faces a similar squeeze: 920 MW of current data center capacity will triple to 3,500 MW as 2,600 MW come under construction, with the North American Electricity Reliability Corporation projecting elevated grid risk there beginning in 2031.
Tech firms are responding rationally: building captive power plants or siting adjacent to generation to sidestep transmission entirely. Novva in Utah and Thunderhead Energy Solutions, which proposed **23 GW across Texas, Montana, and Illinois** plus a 5,000 MW gas plant in Winkler County, West Texas, both sought EPA air quality exemptions to fast-track on-site generation.
Joule Capital Partners is deploying 1.5 GW of onsite natural gas generation across a 4,000-acre Utah campus, with Wheeler Machinery delivering 636 Caterpillar engines starting March 2025 and 455 MW firm by end of 2026.