The rezoning decision would add a data center overlay zone to go over a current industrial-commercial zone property at 1507 S. and 180 East and will now go before the City Council for a vote. 

The Planning Commission’s approval came following a lengthy Feb. 11 meeting and despite opposition from Mayor Marsha Judkins, who said in a formal letter that approving the project would be premature and that an additional data center would not be in Provo residents’ best interest. The commission recommended rezoning in a 5-2 vote, then unanimously voted to approve the project.

Property owner B+F Timpanogos Tech Center LLC is requesting to build the data center. According to city documents, the owner would create a development agreement with Provo that ensures no on-site power generation — aside from backup generators — and the use of a closed-loop water system that would not exceed 4,380,000 gallons per year, roughly the same amount as a car wash. 

Provo City staff coordinator Dustin Wright said the data center would enter an agreement with Provo City Power to supply electricity to the facility, beginning with five megawatts, which applicant Stephen Styler said would be a “very small” data center.

Tad Smallcomb, engineering manager at Provo City Power, added that Provo residents would not see their power rates increased by the partnership, which he estimated would bring in more than $2 million annually to the city. 

“It would be a significant financial impact to the power department revenues, and therefore the general fund,” Smallcomb said. 

Several people spoke out against the project during a public comment period, with many arguing it would be a poor location and have a limited economic impact.  

Angie Carter, chair of Provo’s East District, expressed concerns over the proposed facility’s proximity to Rocky Mountain University and said if the backup generators were used at the facility, it would be too loud. She also questioned whether the approximate 30 people the center would employ would be worth the water and power used to run the facility. 

“I can’t help but think that Provo is giving up a lot for a little. … This particular property is right next to a hotel and school. We can make much better use of this property,” Carter said. 

Judkins stated in her letter that land-use decisions in redevelopment areas must prioritize “long-term economic value alignment with the city’s strategic goals and uses that strengthen the city’s tax base and workforce,” and she argued the data center would provide few jobs and limited wage growth. 

“East Bay represents one of Provo’s most significant opportunities for future economic redevelopment,” she said. “The area has strong potential to support high-value job-creating uses that increase area median income and contribute to long-term economic resilience. It would be premature to commit this centrally-located site to a use that does not align with these objectives before the city’s economic development planning work is complete, because data centers are not place dependent and can be developed in many locations.” 

Commissioner Joel Temple suggested the committee postpone the decision until the city’s economic development plan is finalized this spring, but the majority of the committee determined to go forward with the positive recommendation and approval. 

Commission Chair Jonathan Lyons said he works with AI and computation in his career and that having a data center close by serves as a benefit to building large AI models. He argued there are a number of beneficial uses for AI, and that Provo needs to get involved. 

“I think saying AI is going to go away and we don’t need data centers is like saying in the dot-com boom of 2000 that the internet was going away,” Lyons said. “That’s not what happened, right? It restructured. We found the good uses, stopped some of the bad uses, and it moved forward. And I see that happening here, and I do see it as a draw for tech companies that are trying to build on these technologies, many of which are coming out of the universities here and need infrastructure to stay here, instead of moving out of Provo to other places.” 

Commissioner Matthew Wheelwright said he was a “huge yes,” considering it a boost to the East Bay area that has several vacant parking lots and land parcels. 

“This is a chance to get a jumpstart,” he said. “It’s still going to take a long time, right? It’s going to take a while to get this building done. I think waiting is just not useful for what it brings and what it can add.”