Energy
Utah coal region debates nuclear and gas data centers
Carbon County in Utah is facing local division over plans to build new data centres powered by small modular nuclear reactors and natural gas plants.
Key points
- Valar Atomics plans to build a complex of small modular reactors in Carbon County to power industrial activities including data centres.
- Altigen Energy has proposed a separate large data centre project backed by a natural gas power plant.
- Local residents have expressed concerns over public health, safety, heat islands, and water scarcity.
What happened
According to Canary Media, Carbon County in Utah is experiencing a major energy transition following the decline of its coal industry, which has produced no coal since 2023. Nuclear startup Valar Atomics has secured a long-term lease with the Utah Trust Lands Administration to build small modular reactors and support facilities. In addition, Altigen Energy has proposed a massive project known as 'Jurassic Spark', which involves constructing a natural gas power plant to supply electricity for a new data centre campus.
State officials, including Governor Spencer Cox and U.S. Senator John Curtis, along with local commissioners, have supported the developments as a way to boost local tax revenues and economic activity. However, the initiatives have faced strong pushback from community members worried about the untested nature of small modular reactors, environmental impacts, and a lack of public consultation.
Why it matters
The proposals highlight the growing tension between meeting the massive electricity demands of modern data centres and addressing local environmental and safety concerns. With energy markets showing Henry Hub natural gas spot prices at 3.03 US$ per MMBtu as of October 2026, according to US EIA data, developers are increasingly turning to dedicated fossil fuel and nuclear solutions to power intensive computing infrastructure.
Residents have raised concerns regarding the proximity of the proposed facilities to residential areas, potential radioactive waste storage, local water scarcity, and the creation of urban heat islands in a valley region. While supporters emphasize the economic necessity of replacing lost coal revenues, critics argue that the community bears disproportionate risks.
Original reporting
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