As the United States faces increasing competition from China in the technology sector, government leaders at all levels must focus on strategies that keep American data on American soil while bringing economic benefits to local communities.
Here in the Beehive State, with the recent rapid growth of Silicon Slopes, we have a unique opportunity to become a national and global leader in data infrastructure while bringing high-paying jobs to our region. Utah’s tech sector generates roughly $22.5 billion in economic impact each year, and that number is expected to increase significantly over the next decade. We should build on this momentum.
The question of where our data is stored is not abstract. According to recent polling from the Rainey Center, voters believe it is important that Americans’ data not be stored in Chinese data centers, with 77% calling this “extremely” or “very” important. Additionally, 83% agree that data centers serving American consumers should operate within U.S. borders. This concern spans party lines. Seventy percent of voters agree the U.S. faces technological competition with China, and they want America to lead.
Some might suggest Europe as an alternative. But European data centers come with their own complications: strict privacy regulations that can conflict with American business practices, sovereignty concerns and tax revenue that flows overseas rather than staying in American communities. When we build data centers here, the tax dollars stay here.
While news about data centers is often negative, the conversation rarely includes how they benefit local taxpayers. Data centers generate substantial property tax revenue that directly funds schools and public services. Polling from Democratic strategist David Shor found that when voters learn data centers could reduce property taxes by 10%, support jumps from 31% to 59%, a swing of 41 points. This is not hypothetical. In Loudoun County, Virginia, data centers account for nearly half of all property tax revenue, enabling significant reductions in tax rates for homeowners. In Utah, this revenue could mean better-funded schools, improved infrastructure and lower tax burdens on families.
For the data center industry to expand, it needs workers. Not just engineers and programmers, but construction workers, electricians, plumbers and HVAC technicians. These are good-paying blue-collar jobs that cannot be outsourced. Once a data center is built, it requires ongoing maintenance, creating permanent local employment.
Critics sometimes worry about strain on the electrical grid. But modern data center operators are solving this problem themselves. Large-scale facilities now operate on a "bring your own power" model, generating their own electricity behind the meter at giga-watt scale. In fact, Utah has permitted the second-largest solar project in the state specifically to power data center operations. These facilities are designed to be fully powered onsite, not drawing from the grid that serves homes and businesses.
The Rainey Center found that 94% of voters support energy powering U.S. data centers coming exclusively from domestic sources, and 81% identify energy security as a component of national security. Seventy-one percent of voters back reducing regulatory barriers to construct new data centers and energy infrastructure domestically.
Some have raised concerns about water usage for cooling. This may have been a fair question about older data centers, but modern data center technology has responded with significant efficiency improvements. New cooling systems use a fraction of the water that older facilities required. Data centers account for less than 1% of U.S. water use.
AI is here to stay. The infrastructure that powers it will be built somewhere. The only question is whether it will be built in America or in China. It’s worth asking: Do Americans want the data for their Ring cameras or their text messages stored in data centers in China? Outdated policies that block data center development will not stop the technology from advancing. They will only ensure that the jobs, tax revenue and strategic advantages go elsewhere.
As we position our state for the future, we have a responsibility to support the infrastructure that keeps American data secure, funds our schools, creates local jobs and maintains our energy independence. Utah can lead this effort.