Banks Lend $2B For 100-Acre Utah AI Data Center

In a major sign of the booming demand for AI infrastructure, lenders extended a $2B construction loan to build a state-of-the-art data center in West Jordan, Utah, just outside Salt Lake City.

This 100-acre facility will support the rapidly expanding AI industry, highlighting the sector’s growing need for massive computing power, per WSJ.

Scaling Up For AI

The West Jordan data center will have a capacity of 175 megawatts of continuous power—enough to power 175K average-sized U.S. homes.

The data center is already fully leased before construction is completed, underscoring how hyperscalers like Microsoft (MSFT) and Amazon (AMZN) are rapidly securing space in advance for ever-increasing AI demands.

“This is about serving the AI-driven surge in data storage and processing needs,” said Jordy Roeschlaub, co-president at Newmark, which facilitated a similar $2.3B loan for a data center in Abilene, Texas.

Notably, the West Jordan facility is one of the second wave of $2B+ data center loans this year, following a similar deal in January.

Unyielding Demand

This latest AI project is not only one of the largest data center loans in recent years but also an indicator of how quickly the industry is scaling.

In 2024, over 6.3 gigawatts—or 6.3K megawatts—of data center capacity was under construction across the top eight US markets. That’s more than double last year’s capacity, as tech giants seek to locate new facilities in emerging markets.

As traditional tech hubs in places like Northern Virginia and Atlanta face constraints in power supply and land availability, developers are looking further afield.

Tech companies are exploring new markets like Louisiana, South Carolina, and Utah, where local governments are more welcoming and natural resources like power and water are more readily available.

Sustainable Design

Utah, however, presents unique challenges. While the region offers a stable environment free from natural disasters like earthquakes, water scarcity remains a key concern.

The developers have addressed this by implementing an innovative cooling system that reduces water evaporation. This cooling system consists of four 12-inch pipes running around the facility’s perimeter to recirculate water efficiently, minimizing evaporation—a critical factor in arid regions.

“You can’t go into these cities responsibly and use water for cooling,” said Novva CEO Wes Swenson. The innovative system will allow the project to sidestep the water issues plaguing other facilities in the region.

Looking Ahead

The Utah data center is a prime example of how the commercial real estate sector is adapting to the needs of a rapidly transforming tech industry.

But as data centers continue to grow in size and complexity to meet AI’s energy demands, challenges remain. Access to power is a critical factor, and in Utah, it’s taking longer to secure sufficient energy. Where it once took 3 years to secure a reliable power path, it now could take up to 5–6 years, according to Swenson.

Still, the massive scale and preleasing arrangements for these projects reveal the massive demand that continues to drive investment in AI infrastructure.