Utah’s economy has grown because our state has combined a strong business climate with a culture of work, entrepreneurship and long-term planning. Those strengths are especially important as artificial intelligence (AI) becomes a larger part of how companies operate, how workers do their jobs and how communities compete for investment.
AI is becoming a practical tool for businesses of every size, and Utah’s technology ecosystem is well positioned to turn it into new businesses, investment and jobs. A Salt Lake City-based company is using AI to accelerate drug discovery while a Utah biotech accelerator has helped portfolio companies raise more than $205 million since the program launched in 2020.
The benefits of AI depend on the infrastructure behind it, such as data centers. As demand grows, states that can support reliable digital infrastructure will be in a stronger position to attract jobs and investment. The University of Utah’s new Redtail AI Factory is a statewide computing resource designed to give higher education institutions, state organizations and businesses access to advanced AI computing, training and support. The project represents $50 million in public and private investment over five years.
What’s at stake with data center investment?
As some question whether Utah should pursue data center investment, it’s worth focusing on what’s at stake. Data center projects can create construction jobs, support skilled trades, provide long-term technical roles and create work for local suppliers. They can also expand the tax base supporting schools, roads, public safety and other community needs. Utah must continue competing for data center investment while insisting that it happens responsibly.
Our small businesses on Main Street stand to benefit as well. Many Utah entrepreneurs are looking for tools that help them operate more competitively in crowded markets. Wider access to AI can help level the playing field for smaller firms that do not have large administrative teams or major corporate budgets. For a state like ours that values entrepreneurship, this matters.
Utah’s healthcare and research sectors also show what these technologies can make possible. The state has committed $18.6 million to the Utah Health AI Vault, an initiative at the University of Utah designed to help researchers use AI to better understand health data and accelerate medical and policy research. Another $15 million is supporting a new data center and broader AI ecosystem at the university. These investments show that AI infrastructure can support more than technology companies. It can also advance research, healthcare and education.
Realizing those benefits also requires an energy plan. Data centers require reliable electricity, and so do Utah families, farms, schools and hospitals. As demand grows, the Beehive State should add energy capacity, upgrade its grid and plan for future needs while ensuring companies pay their own way and residents aren’t left to pick up the costs.
These upgrades and investments can serve Utah well beyond one industry. They will help communities manage growth, give employers confidence to invest and improve reliability for residents.
While some raise concerns about Utah’s data center development, other states are competing aggressively for technology investment, energy infrastructure and the jobs that come with them. Utah has the workforce and innovation culture to lead, but leadership requires building infrastructure. We must build responsibly, with our communities and workers at the center of that growth.
Utah should attract high-value investment, protect communities, modernize the grid and ensure workers and small businesses share in the benefits. Data centers are one part of that strategy, alongside the universities, startups, entrepreneurs and research institutions already building Utah’s AI economy.
AI will continue to shape the economy in the years ahead. Utah has the talent, energy, resources and entrepreneurial spirit to help build that future here rather than watch it happen somewhere else.
