Utah’s Emerging Framework for Responsible Data Center Development

By Denise A. Dragoo and Josh Miller

Utah is establishing itself as one of the nation’s most attractive jurisdictions for large-scale data center development, with a structured, defensible regulatory pathway that gives developers and investors the clarity needed to deploy capital at scale. The cornerstone is Executive Order 2026-03, “Establishing a Higher Bar for Data Center Development in Utah,” signed by Governor Spencer J. Cox on May 29, 2026.

The Executive Order creates an actionable compliance framework letting developers demonstrate stewardship across water, air quality, energy, wildlife, and community engagement – reducing regulatory and reputational risk. Recent enactments on energy self-supply and water rights operationalize these principles, while a few counties have adopted short-term local moratoria to update zoning; understanding how these interact with the state framework matters for site selection.

Executive Order 2026-03: The Data Center Framework

The Order directs state agencies to evaluate large data center projects against eight principles: protecting the Great Salt Lake and other water resources; protecting air quality; promoting rural economic growth; mitigating wildlife impacts; protecting utility ratepayers; expanding energy capacity consistent with those principles; leading on “pro-human” artificial intelligence; and providing meaningful public comment.

For developers, these principles function as a checklist. A project that can demonstrate compliance through documentation and early engagement becomes a model development rather than a target for opposition – a competitive advantage in permitting and public acceptance.

Utah’s Self-Supply Energy Model

A core Executive Order principle is protecting ratepayers from bearing large-load infrastructure costs. Utah’s framework supports this by allowing data centers to procure their own power – off-grid or via dedicated supply, such as on-site generation with battery storage – rather than relying on utility-funded grid infrastructure, expanding energy capacity while insulating ratepayers from cost-shifting.

New Water Rights Procedures: Reducing Permitting Uncertainty

Utah H.B. 60, Water Rights Amendments, effective May 6, 2026, addresses one of the most significant sources of permitting risk for large-load projects: the scope of protests that may be lodged against water right applications.

Previously, the State Engineer could deny applications based on broad “public welfare” objections or interference with a “more beneficial use” – open-ended standards inviting litigation. H.B. 60 narrows the public-welfare inquiry to water pollution and scarcity and removes the “more beneficial use” denial ground.

Applications now face defined, science-based criteria rather than discretionary standards. This aligns with the Executive Order’s water-protection principle, giving developers a defensible path to water rights while reducing protracted proceedings.

Local Moratoria: Temporary Pauses, Not Permanent Barriers

A handful of Utah counties have adopted temporary, localized moratoria on new data center applications, responding to gaps in zoning code rather than opposition to the industry – and are legally capped in ways that preserve development opportunities.

On May 26, 2026, the Iron County Commission adopted Ordinance 2026-13, a 180-day moratorium on new data center, power plant, and solar applications, citing gaps in county code. State law caps such moratoria at 180 days. The ordinance is prospective only: an application already complete before adoption proceeded unaffected, while an incomplete one was held until the moratorium lapses.

These pauses are time-limited, apply only to new or incomplete filings, and are designed to yield updated standards – not to foreclose development. This contrasts favorably with Utah’s statewide approach under the Executive Order, the self-supply model, and H.B. 60, which provide a predictable framework above county-level review. Developers who plan around county timelines while building a state compliance record are well positioned once moratoria lapse.

Key Takeaways and Action Items

Data center developers and investors considering Utah should consider the following steps:

Utah’s emerging framework shows that responsible regulation and large-scale data center investment are not at odds. Developers who engage early with the state’s structured pathway will find predictable permitting and reduced reputational exposure.

***Opinions expressed are those of the authors and not necessarily the firm’s or their colleagues’.