Brightlio Blog

Utah has emerged as a prominent destination for colocation services in the Western United States. The state hosts over 40 data centers across key markets such as Salt Lake City, Orem, and St. George. This growing infrastructure supports a range of industries, including cloud computing, artificial intelligence, and enterprise IT services.

Utah’s Strategic Advantage for Low-Latency Connectivity

Utah’s central position in the Mountain West region gives organizations low-latency connections to major markets like Los Angeles, Denver, Seattle, and Dallas. Its geographic placement cuts physical distance to these hubs, helping businesses meet strict uptime requirements and ensure uninterrupted operations.

Salt Lake City serves as a major interconnection point for the Intermountain West. Major fiber carriers such as Zayo, Lumen, and Verizon maintain strong network infrastructure in the area. Their diverse, redundant routes provide higher network reliability and support enterprise-grade internet, private cloud, and hybrid cloud services. Connection performance in Utah often exceeds the national average.

Data infrastructure Growth in Salt Lake City and St. George

Novva Data Centers, a hyperscale and colocation provider, partnered with Zayo to build a private dark fiber ring at its strategically located West Jordan campus.

This setup enables secure, high-capacity links between multiple facilities and offers customers direct, low-latency pathways to national and international destinations. The dark fiber ring gives Novva more control over performance and scalability without depending on public networks.

In St. George, ValorC3 (formerly Tonaquint) uses Megaport’s Network-as-a-Service (NaaS) platform. In late 2024, ValorC3 deployed a 100Gbps Megaport node at its St. George facility. Through Megaport, clients in southern Utah create direct, flexible connections to public cloud providers, SaaS platforms, and enterprise sites.

This setup helps businesses scale bandwidth quickly, simplify network management, and reach critical services without heavy physical expansions. St. George has become an attractive choice for companies and government agencies looking for edge data center solutions outside traditional urban centers.

Economic and Tax Incentives

​Utah provides a range of tax incentives that reduce the total cost of ownership for data center operators and tenants.​

1. Sales and Use Tax Exemptions

Under Senate Bill 114, enacted in 2020, Utah offers a sales and use tax exemption for qualified data center equipment.

This exemption applies to machinery, equipment, and repair or replacement parts with at least a one-year economic life. It covers items used in the operation of a qualifying data center or by its occupants. Both data center operators and tenants can use the exemption, as long as the equipment supports their operations at the data center.

There are no specific requirements regarding lease term, provisioned capacity, capital investment, or job creation to qualify for this exemption. The legislation is retroactive to data centers constructed after July 1, 2016.

2. High Cost Infrastructure Tax Credit (HCITC)

Utah’s High Cost Infrastructure Tax Credit (HCITC) supports large-scale infrastructure investments, including data centers and data infrastructure projects. Eligible developments, like a Utah data center or colocation facility, can qualify for a nonrefundable tax credit. The credit offers up to 30% of new state revenue generated each year and is capped at 50% of the total infrastructure investment cost.

Qualifying investments may include energy delivery systems, water systems, road improvements, pipelines, electric transmission, and other key infrastructure. These improvements are essential for maintaining reliable power, energy efficiency, and uninterrupted operations, all critical for running world-class data centers.

To qualify, projects must expand or create new industrial, mining, manufacturing, or agricultural activity. Investments must cover at least 10% of infrastructure costs or total at least $10 million. They must also generate new state revenues directly tied to the infrastructure development. In locations like Salt Lake City, Utah, such infrastructure expansion also supports data center colocation and addresses growing demand for secure and efficient Salt Lake City data operations.

3. Renewable Energy Incentives & Reliable Power

Utah offers several tax credits for businesses that install renewable energy systems, such as solar panels or wind turbines. These incentives support clean energy adoption while strengthening the data infrastructure. Companies investing in renewable technologies can offset net project costs, helping drive broader acceptance of sustainable practices among industries.

Tax credits can exempt renewable energy equipment from sales taxes. They may also lower property taxes for renewable energy facilities. Qualified owners can reduce federal income taxes based on capital investments in renewable energy projects.
Facilities focused on energy efficiency benefit from backup generators and advanced fire detection systems. Suppression systems also help ensure operational resilience during natural disasters.

Utah offers energy incentives and low electricity rates. The state also has reliable power and one of the lowest corporate tax rates nationwide. Together, these factors help lower the total cost of ownership for data center facilities.

Businesses that pick colocation in Utah or build in Salt Lake City get strong, reliable infrastructure.
They benefit from nonstop operations and tight video surveillance.
A dedicated team works around the clock to protect critical assets.

Climate and Energy Efficiency

Utah’s semi-arid climate, with low humidity and cool temperatures, supports energy-efficient operations. Facilities can use ambient cooling systems, which reduce dependence on mechanical chillers and help lower overall energy consumption.

For example, Oracle’s data center in South Jordan, Utah, employs air-side economization and has received recognition for its energy conservation efforts. This approach reduces energy costs while promoting uninterrupted operations.

Utah’s strong commitment to renewable energy, including solar and wind power, helps data center operators and clients meet their sustainability goals. Meta’s facility in Eagle Mountain runs entirely on renewable energy. This shows Utah’s advantage for companies that want reliable power and strong protection.

Utah’s Operation Gigawatt initiative aims to double the state’s energy generation capacity. This supports the energy needs of data infrastructure, backup generators, and disaster recovery solutions, all of which are critical to data center success.

Best Colocation Providers in Utah

Utah is home to some of the biggest and most sophisticated data centers in the US and the world. Here are a few premier colocation companies worth noting: 

1. Novva Data Centers (West Jordan)

Novva operates a 100-acre campus in West Jordan. The campus features over 1.5 million square feet of purpose-built data center space. This space is spread across four planned buildings.
This leading colocation service caters to clients who require between 250 kW and 30 MW of power. It includes an on-site 200 MW substation built with N+1 redundancy.

The campus supports direct-to-chip cooling and is designed for high-density workloads, including AI applications. Novva’s infrastructure includes access to four major long-haul fiber routes and robust 24/7 security measures, such as robot and drone monitoring. ​

2. Aligned Data Centers (West Jordan)

Aligned’s Salt Lake City hyperscale data center campus in West Jordan spans 55 acres, includes multiple facilities such as SLC-01, SLC-02, and SLC-03, and ranks among the best colocation providers in Utah.

The campus offers scalable colocation solutions with advanced cooling technologies, including the company’s patented Delta cooling system, enabling densities of 3 to 350 kW per rack.

Facilities are designed with modular equipment for hyper-scalability and resiliency, and the campus provides connectivity to major carriers like Cogent, Comcast, Lumen, and Zayo.

3. DataBank (Bluffdale)

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

As one of the premier colocation companies in the region, DataBank’s SLC6 offers around 88,250 square feet of raised floor space and delivers 22 MW of critical power capacity.

The campus includes a private 66 MW N+1 power substation and provides connectivity to multiple carriers and cloud providers. DataBank’s facilities support enterprise-class colocation, connectivity, and managed services, catering to the region’s growing technology sector.

4. Fibernet (Orem)

Based in Orem, Fibernet’s ORM1 Data Center offers colocation services with a focus on security and reliability. The facility provides up to 40,000 square feet of space and more than 1 MW of power, featuring 2N power redundancy, N+2 cooling, and seismic Zone 4+ construction.

Security measures include biometric access controls, 24/7 surveillance, and compliance with standards such as PCI DSS, SSAE18, SOC 2, and HIPAA. The data center is carrier-neutral, connecting to multiple on-premise carriers, including Zayo, Comcast, and Verizon.

Recent Developments and Key Updates (2024–2025)

Let’s check out the latest developments that make Utah a great colocation hub:

1. Tonaquint rebranded to ValorC3 (Jan 2025)

Southern Utah’s Tonaquint Data Center adopted the new name ValorC3 Data Centers, reflecting an expanded focus on colocation, cloud, and connectivity services. Along with the rebranding, a new CEO and growth strategy were announced to target large enterprise clients. ( Valor)

2. Megaport Expansion to St. George

In December 2024, ValorC3 (Tonaquint) partnered with Megaport to install a 100G node at the St. George data center. This upgrade gives St. George colocation customers direct, on-demand access to major cloud providers and international networks. It greatly increases the facility’s overall appeal. ( Valor)

3. Novva West Jordan Expansion Financing

In March 2025, Novva Data Centers secured $2 billion in financing, backed by JPMorgan and Starwood, to finish its West Jordan campus. The funding will add two new data center buildings with about 144 MW of capacity. This expands the campus beyond the first 80 MW building that launched in 2023. The campus remains on track for four buildings, 1.5 M sq ft total, by 2026. (Business Wire)

4. Aligned’s Continued Growth

Aligned received a $600 million loan (Mar 2024) from Blackstone to support its SLC-03 80 MW data center construction. The SLC-03 facility in West Jordan achieved Three Green Globes certification for sustainability. Aligned is also expanding to a new site in West Valley City (SLC-04), indicating confidence in the Utah market. (Data Center Dynamics)

5. DataBank SLC6 Expansion

DataBank completed two rapid expansions of its newest Salt Lake City data center (SLC6) by Q1 2024, adding 30,000 sq ft and 11 MW to meet customer demand. After expansion, SLC6 now totals 22 MW capacity. DataBank has signaled plans for an additional Salt Lake City facility (SLC7) as the Granite Point campus nears full build-out. (Houlihan Lokey)

6. Power Grid Initiative – Operation Gigawatt

Utah launched Operation Gigawatt in late 2024, an ambitious initiative to double energy production in 10 years to support data centers and AI growth​. By early 2025, the plan’s framework (boosting transmission, enabling nuclear/geothermal, funding innovation) was in motion under the Governor’s Office​. This is a critical step to ensure long-term power availability for large data center loads in Utah. (Utah Energy)

7. Meta’s Renewable Energy Projects

Meta dramatically expanded its renewable energy procurement in Utah. Notably, the Faraday Solar Farm (673 MW) in Utah County – the state’s largest solar project – was under construction in 2024 to exclusively supply Meta’s Eagle Mountain data center starting in 2025​. This, along with other solar and wind deals, signifies a major increase in clean energy usage for Utah’s data center industry.  (CleanTechnica)

8. Regulatory Stability

No adverse regulatory changes occurred; rather, Utah reaffirmed incentives. The SB 114 sales tax exemption on data center equipment (effective 2020) remains in force​, continuing to lower expansion costs. Additionally, Utah joined discussions on ensuring data centers have backup power or grid support (like requiring renewable projects to include storage), but as of 2025 there are no bans or moratoriums – Utah’s stance is facilitative. (

Each of these developments shows Utah’s dynamic and growing colocation market. In 2025, Utah offers more capacity, better connectivity, and stronger public support for data centers than ever before. This fact-checked review confirms that Utah’s data center ecosystem, from Salt Lake City’s interconnection hubs to energy policy, is keeping pace with rapid industry growth, solidifying the state’s status as a rising star in the U.S. data center landscape.

Final Thoughts 

Utah’s combination of strategic location, robust connectivity, favorable tax policies, and energy-efficient climate positions it as an attractive destination for colocation services. Businesses seeking scalable and sustainable infrastructure solutions can find a range of options among the state’s leading data center providers.