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Spanish Fork Council Approves Code Amendment for First Data Center

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Spanish Fork Council Approves Code Amendment for First Data Center
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The Spanish Fork City Council approved a code amendment on Tuesday to allow for the city's first data center. The new regulations, which were revised over multiple meetings, include specific requirements for onsite power generation and water usage.

Key takeaways

  • The Spanish Fork City Council approved a code amendment in a 3-2 vote to allow for the city's first data center.
  • The proposed data center by Volition would be located in an existing warehouse at the mouth of Spanish Fork Canyon.
  • The new code limits onsite power generation to 450 MW and requires the facility to operate isolated from the local power system.
  • The facility is expected to generate approximately 250 megawatts and could provide at least $40 million in annual tax revenue.
  • Water usage for the cooling system is limited to 300,000 gallons per year following the initial fill.

The Spanish Fork City Council approved a city code amendment on Tuesday to clear the way for the city's first data center to be built, according to a September 23 report.

The 3-2 vote approved a new code nearly 5,000 words long that was revised during multiple council meetings. The amendment allows for one data center in the city that utilizes onsite power generation.

The proposal to update the city code was put forth by Volition, which intends to build a data center in an existing warehouse located at the mouth of Spanish Fork Canyon.

Vesper CEO Jeff Chavez stated last month that the facility would generate approximately 250 megawatts using onsite power generation. He claimed the facility would have an on-site value of more than $4 billion, which could generate at least $40 million in annual tax revenue for various taxing entities.

To manage the facility, the new code establishes that a data center with onsite power generation must have no more than 450 MW of power-generation capacity and must operate isolated from the Spanish Fork power system.

The facility would be cooled by a closed-loop water system. According to Chavez, the system requires 500,000 gallons for the initial fill and 250,000 gallons annually to create humidity, while producing low emissions.

The new city code mandates that after the initial filling of the cooling system and humidification areas, water use may not exceed 300,000 gallons per year. The policy also includes regulations regarding air emissions, noise, and wastewater, and states the city may issue operational restrictions or suspensions if terms are violated.

Councilman Kevin Oyler remarked during the meeting that the city had never put this much review into an ordinance and noted the unprecedented level of detail in the document.

Councilman Shane Marshall and Councilwoman Stacy Beck voted in favor of the change, with Marshall stating the text had improved and left the city in a good position. Councilmen Jesse Cardon and Landon Tooke voted against the amendment. Tooke expressed that the city needed to perform more public education before making such a decision.

The decision follows significant public scrutiny online and in council meetings. Councilwoman Beck noted that while social media can be loud, she has received supportive comments through personal conversations and texts.

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