Colocation in Utah – Everything You Need to Know

Utah offers colocation services in the Western United States. Data Center Map lists over 40 data center entries across markets such as Salt Lake City, Orem, and St. George, including private campuses and planned projects. Utah’s colocation infrastructure supports workloads such as cloud computing, artificial intelligence, and enterprise IT services.

Utah Data Center Infrastructure Overview

Energy Cost per kWh: EIA’s preliminary July 2026 statewide averages are 10.85¢ per kWh for commercial customers and 9.10¢ for industrial customers. Facility electricity charges depend on applicable tariffs and contracts.

Data Center Listings: Data Center Map lists over 40 entries across 7 Utah markets, including private campuses and planned projects.

Typical Temperature Range: Salt Lake City temperatures typically range from 23°F to 93°F throughout the year.

Available Fiber Speeds: UTOPIA Fiber supports up to 10 Gbps residential and 100 Gbps business connections, subject to service availability.

Utah’s Connectivity to Regional Markets

Salt Lake City provides carrier interconnection and internet peering options for organizations serving the Mountain West. Businesses connecting to Los Angeles, Denver, Seattle, Dallas, or neighboring Idaho should evaluate latency on their intended routes. Actual performance depends on network routing, peering, and congestion; geography alone does not establish latency or uptime.

The Salt Lake Internet eXchange (SLIX) enables participating networks to exchange traffic directly, which can shorten regional routes and reduce latency. Salt Lake Internet eXchange DataBank’s SLC1 carrier hotel lists connections to carriers including Zayo and Lumen, plus cloud connectivity options. databank.com Businesses seeking redundant connectivity should confirm separate physical routes, building entrances, and failover arrangements with their providers before relying on multiple circuits for continuity.

Data infrastructure Growth in Salt Lake City and St. George

Novva Data Centers, a hyperscale and colocation provider, partnered with Zayo to connect its West Jordan campus to 2 Utah network aggregation hubs through a diverse dark fiber ring.

The ring provides dedicated fiber infrastructure that Novva can equip and manage for its capacity requirements. Zayo supplied a separate 100 Gbps dedicated internet service. Connections beyond the ring depend on the networks and services used.

In St. George, ValorC3, formerly Tonaquint, offers Megaport’s Network-as-a-Service (NaaS) connectivity. Tonaquint announced the 100 Gbps-enabled deployment in December 2024. The facility now lists Megaport access to Amazon Web Services, Microsoft Azure, Google Cloud, and Oracle Cloud.

These connections give customers options for adjusting bandwidth and connecting colocation infrastructure to public cloud services. Available speeds depend on the purchased ports and services. ValorC3 positions its St. George facility for disaster recovery, secondary production, and hybrid IT deployments.

Economic and Tax Incentives

Utah offers tax exemptions and credits that can reduce eligible equipment and infrastructure costs for data center operators and tenants. Eligibility depends on the facility, investment, and taxpayer. The following 3 programs have different qualification and approval requirements.

1. Sales and Use Tax Exemptions

Utah Code §59-12-104(84) exempts qualifying purchases or leases of data center machinery, equipment, and normal operating repair or replacement parts.

The items must have an economic life of at least 1 year and serve the qualifying data center’s operations or an occupant’s operations within it. Both operators and occupants can qualify for eligible purchases.

Facility eligibility matters. Utah’s qualifying-data-center definition includes a new operation constructed on or after July 1, 2016, with one or more buildings totaling at least 150,000 square feet. The facility must meet the other requirements in the statutory definition.

The construction date is an eligibility threshold, not a blanket exemption for every Utah data center. Tenants should confirm their facility’s qualifying status before treating equipment purchases as exempt.

2. High Cost Infrastructure Tax Credit (HCITC)

Utah’s HCITC provides a nonrefundable credit for approved infrastructure investments. Standard qualifying projects can receive 30% of qualifying infrastructure-related state revenue generated annually, capped at 50% of infrastructure investment costs.

Eligible infrastructure categories include energy delivery, water systems, road improvements, and other projects defined in state law. A data center or colocation facility does not qualify automatically because it requires power or network infrastructure.

For applicable project categories, infrastructure construction costs must exceed 10% of total project costs or $10 million. This measures infrastructure costs against the overall project, rather than requiring the applicant to contribute 10% of infrastructure spending. Additional eligibility conditions depend on the project category.

Applicants must complete the Office of Energy Development review and approval process. Credits depend on qualifying revenues and the approved agreement, so the maximum benefit should not be treated as an upfront construction subsidy.

3. Renewable Energy Incentives

Utah’s commercial Renewable Energy Systems Tax Credit provides eligible installations with a refundable credit of 10% of qualifying system costs, capped at $50,000 per commercial unit.

Eligible technologies include solar, wind, geothermal, hydro, biomass, and certain renewable thermal systems. Technology, capacity, ownership or financing, and certification requirements apply; larger generating projects follow separate provisions.

Qualifying systems must be completed and placed in service before January 1, 2028. Applicants need written certification from the Office of Energy Development.

These income-tax credits do not automatically create sales-tax or property-tax exemptions. Colocation tenants should distinguish incentives available to their own purchases from benefits claimed by the facility owner.

Climate and Energy Efficiency

Utah’s cooler outdoor conditions can support energy-efficient data center cooling. Air-side economization uses outside air to reduce mechanical cooling demand when temperature, humidity, and air quality permit.

Oracle’s Utah Compute Facility provides a historical example. Its 2012 Corporate Citizenship Report described using outdoor air to cool the facility for 90% of the year.

Renewable energy procurement can support operators’ sustainability goals. Meta reports that its Eagle Mountain facility’s electricity use is matched with 100% clean and renewable energy. This matching claim does not establish continuous operation on renewable electricity alone.

Utah’s Operation Gigawatt initiative, launched in October 2024, set a goal to double power production over 10 years. Its priorities include transmission expansion and additional generation, including nuclear and geothermal development. These are development goals, rather than proof of available power at a particular data center.

Best Colocation Providers in Utah

Utah hosts colocation facilities serving enterprise and hyperscale customers. The following four providers offer different campus sizes, cooling systems, and connectivity options.

1. Novva Data Centers (West Jordan)

Novva operates a 100-acre campus in West Jordan. Its facility page describes 1.5 million square feet planned across four phases; a March 2025 financing announcement describes a 1 million-square-foot, 175 MW buildout.

Novva advertises deployments from 250 kW to 30 MW and a 200 MW on-site substation with N+1 redundancy. Substation capacity is separate from critical IT capacity.

The expansion design includes direct-to-chip cooling for high-density workloads, including artificial intelligence. Published campus features include four major long-haul fiber routes and 24/7 security with robot and drone monitoring. The financing announcement reported the campus fully leased, so new deployments require availability confirmation.

2. Aligned Data Centers (West Jordan)

Aligned’s 55-acre West Jordan campus includes SLC-01, SLC-02, and SLC-03. Its separate SLC-04 facility is in West Valley City.

The provider’s Delta³ air cooling supports up to 50 kW per rack, while DeltaFlow liquid cooling is rated for 350 kW of heat rejection per rack. These are cooling-platform specifications; supported density depends on the contracted deployment.

The Salt Lake City facilities feature modular infrastructure, N+1 power and cooling designs, and provisions for liquid cooling. Aligned lists multiple network carriers near the site; customers should confirm on-site carrier availability.

3. DataBank (Bluffdale)

DataBank operates multiple Salt Lake City-area data centers, including SLC6 on the Granite Point Campus in Bluffdale.

SLC6 lists 88,250 square feet of IT space and 22 MW of critical IT load. These facility specifications do not indicate currently available capacity.

The campus has a 66 MW substation with N+1 redundancy. SLC6 lists 38 on-site carriers, partner cloud connectivity, cabinet and cage colocation, and 24/7 remote-hands support.

4. Fibernet (Orem)

Fibernet’s ORM1 data center in Orem offers colocation with redundant power, cooling, and carrier-neutral connectivity. Its technical sheet lists 10,000 square feet of raised floor, expandable to 40,000 square feet, and a 1.5 MW utility transformer.

The specifications include 2N uninterruptible power supply options, N+2 cooling, and construction described as Zone 4+. Security includes biometric access, surveillance, and a staffed 24/7 network operations center.

On-premise carriers include Zayo, Comcast, Lumen, and Verizon. Fibernet lists SOC 2 Type II reporting and PCI DSS and HIPAA compliance support; customers should request current documentation and confirm its scope.

Recent Developments and Key Updates (2024–2026)

Utah’s data center market has seen new financing, connectivity announcements, renewable energy projects, and water-reporting requirements. The following eight updates cover developments affecting operators and customers.

1. Tonaquint Rebranded to ValorC3

Tonaquint announced its rebrand to ValorC3 Data Centers on January 20, 2025, reflecting its focus on colocation, cloud, and connectivity services across emerging U.S. markets. The leadership change preceded the rebrand: Jim Buie’s appointment as CEO was announced on October 30, 2024.

2. Megaport Expansion to St. George

Tonaquint announced a 100G-enabled Megaport deployment at its St. George data center on December 23, 2024. The announcement described on-demand connectivity to Megaport’s global network and cloud providers including Amazon Web Services, Microsoft Azure, Google Cloud, Oracle Cloud, and IBM Cloud. The 100G designation describes connectivity capability, rather than bandwidth automatically included with every colocation contract.

3. Novva West Jordan Expansion Financing

Novva and CIM Group announced $2 billion in financing from J.P. Morgan and Starwood Property Trust in March 2025. The funding supported two additional buildings, each designed for 72 MW of critical IT capacity, with completion targeted for 2026.

That announcement described a 1 million-square-foot, 175 MW campus at completion. Novva’s facility page separately lists a 1.5 million-square-foot phased development and a 200 MW substation. These figures describe different specifications and should not be combined into a claim of operational IT capacity.

4. Aligned’s Financing and Facility Updates

Blackstone provided an initial $600 million credit facility in March 2024 to support Aligned’s 80 MW SLC-03 development in West Jordan. Aligned now lists SLC-03 as Three Green Globes certified for new construction.

In August 2025, Blackstone’s financing commitments to Aligned exceeded $1 billion, supporting its broader portfolio across the Americas. SLC-04 in West Valley City is an established location: its first-phase completion was announced in February 2022.

5. DataBank SLC6 Expansion

DataBank’s January 2024 announcement described two SLC6 expansions totaling 50,000 square feet of raised floor and 11 MW of critical power, scheduled for completion during the first quarter.

DataBank’s current facility page lists 88,250 square feet of IT space and 22 MW of critical IT load. These published specifications support the expanded facility’s scale but do not establish the precise completion dates or currently available capacity.

6. Operation Gigawatt and Permitting Coordination

Utah launched Operation Gigawatt in October 2024 with a goal to double power production over 10 years. At the May 2026 summit, Utah and the Federal Permitting Improvement Steering Council signed an agreement to coordinate state and federal permitting for eligible infrastructure and energy projects.

The initiative supports future energy development. Individual data center projects still require confirmed utility capacity and connection schedules.

7. Meta’s Renewable Energy Procurement

Faraday Solar in Utah County began commercial operations on September 30, 2025. The 525 MW AC project has a 20-year power purchase agreement with PacifiCorp under Rocky Mountain Power’s Schedule 34 tariff.

Meta purchases the project’s energy and environmental attributes to match its Utah operations with clean energy. This procurement does not establish that the Eagle Mountain campus receives solar electricity during every operating hour.

8. Water Reporting and Tax Incentives

Utah’s HB 76 took effect on July 1, 2026. It requires reporting for new data centers larger than 10,000 square feet that intend to withdraw at least 75 acre-feet of water annually. Facilities already operating or under construction before that date are exempt.

Covered projects must provide pre-construction information and annual water-use reports once operational. Utah retains a sales-tax exemption for qualifying data center equipment and parts with an economic life of at least one year; eligibility depends on statutory conditions.

Final Thoughts 

Utah offers colocation options with regional connectivity, qualifying tax incentives, and opportunities for energy-efficient cooling. Businesses can choose from providers serving enterprise and hyperscale workloads.

Site selection should account for available capacity, utility commitments, cooling requirements, and documented sustainability performance alongside location and cost.