Salt Lake City

Overview

Salt Lake City, Utah, is an emerging data center market in the U.S. Mountain West region, offering a combination of low-cost power, strong connectivity, and a business-friendly environment. With its proximity to major West Coast and Midwest tech hubs, the market has gained traction among hyperscale, enterprise, and colocation providers.

Utah’s data center industry benefits from the state’s stable power grid and access to renewable energy sources, particularly solar and wind, aligning with growing sustainability demands. While seismic activity is a consideration, operators mitigate risks through advanced engineering solutions. Salt Lake City also serves as a critical interconnection point, with strong fiber networks linking the region to key markets such as Silicon Valley and Denver.

Despite its advantages, the market faces challenges, including a competitive landscape with limited large-scale expansion opportunities compared to markets like Phoenix or Dallas. However, state incentives and ongoing infrastructure development continue to support its growth. As cloud adoption and enterprise IT demand accelerate, Salt Lake City is positioned to strengthen its role as a key secondary data center hub in the U.S.