Mountain West · SLG Market Intelligence

Utah

The first state with a dedicated AI policy office, a fast-growing 'Silicon Slopes' data-center boom, and a centralized DTS that runs the nation's largest cloud cooperative — Utah is a digital-government bellwether.

Last updated Oct 1, 2026
$31.6BFY2027 BudgetDTSCentral IT OrgGovRAMPCloud GatePro-Human / SB 149AI Posture

Top Accounts in Utah

1 account · market intel companion

Executive Summary

$31.6B1
FY2027 Budget
$12.4B General and Income Tax Funds (2026 session)
~$277M2
DTS Budget
750+ projects; centralized executive-branch IT
$15M1
AI Compute Funding
One-time, for state AI access/use
May 20244
SB 149 / AI Policy Office
First-in-nation AI policy office + Learning Lab

Utah punches well above its size as a digital-government leader and is one of the most consequential SLG accounts in the Mountain West. Three things define the opportunity. First, Utah was the first state to create a dedicated Office of Artificial Intelligence Policy (SB 149, 2024) and an AI 'Learning Lab' regulatory sandbox; in late 2025 Governor Cox layered on a $10M 'Pro-Human' AI initiative and lawmakers funded $15M of compute capacity for state AI use — agencies are actively operationalizing governed AI. Second, Utah's IT is highly centralized: the Division of Technology Services (DTS), under CIO Alan Fuller, runs a ~$277M budget, 750+ projects, and the new MyUtah citizen portal, making DTS the dominant decision point. Third, the 'Silicon Slopes' data-center buildout (Creekstone's multi-gigawatt Delta 'gigasite', Box Elder, DataBank SL6, BluSky in Nephi) plus Texas Instruments' multi-fab investment make Utah a national AI-infrastructure flashpoint. For Dell, the buying motion runs through the Utah-led NASPO ValuePoint Cloud Solutions cooperative (Dell is an awarded supplier) and state cooperative contracts, with GovRAMP now the cloud-security gate.

Where Dell can play
  • Governed AI for state agencies: $15M compute appropriation + $10M Pro-Human initiative open the door for private/on-prem AI on sensitive data under Utah's SB 149 framework.
  • AI-infrastructure demand tied to the Silicon Slopes data-center boom (PowerEdge, networking, services) and university research computing.
  • DTS modernization: legacy payroll/HR replacement, MyUtah portal, digital ID/verifiable credentials, and a whole-of-state cybersecurity strategy.
  • Endpoint, client, and lifecycle refresh across a centralized executive branch and the local-government devices DTS already protects.
  • Health AI: University of Utah's Utah Health AI Vault (UHAIV) build-out with state support.

Dell Action Plan

  • Lead with governed AI: tie Dell on-prem/private AI and secure compute to Utah's SB 149 framework, the $10M Pro-Human initiative, and the $15M state AI compute appropriation for sensitive-data workloads.
  • Ride the Silicon Slopes data-center boom — position Dell ISG / AI-infrastructure with operators and the university research-computing and health-AI (UHAIV) buyers.
  • Make DTS the anchor account: align to MyUtah, legacy payroll/HR modernization, digital ID, and the AI-for-employees program in a centralized, single-decision-point IT org.
  • Confirm GovRAMP readiness for any cloud/as-a-service offering touching state data before pursuing deals — it is now Utah's cloud-security gate.
  • Confirm Dell's Master Agreement on NASPO ValuePoint's new Cloud and Software Solutions portfolio (listed as not yet executed as of Aug 27, 2026) before leaning on the legacy Cloud Solutions award, and validate state cooperative-contract and reseller coverage for the agencies you're targeting.

Budget & Fiscal

Utah budgets on an annual fiscal year (July 1–June 30) cycle. The 2026 Legislature approved a roughly $31.6B FY2027 budget, of which about $12.4B is from the General and Income Tax Funds; Governor Cox's recommended plan was ~$30.7B and framed around 'responsible fiscal management.' There is no single 'state IT budget' line — most executive-branch technology spend is centralized in DTS (~$277M), with named one-time AI and compute items funded in the 2026 session.

$31.6B1
FY2027 all-funds
Legislature-approved
$12.4B1
State funds
Portion of FY2027 from state sources
~$277M2
DTS budget
Centralized executive-branch IT
Technology & security funding this biennium
DTS (central IT)
Annual; 750+ active projects
~$277M
AI compute capacity
One-time, state AI access/use (2026 session)
$15M
Pro-Human AI initiative
Workforce + academic/K-12 AI curricula
$10M
  • Utah uses an annual fiscal year — figures are single-year unless noted; do not compare directly to biennial-budget states.
  • DTS centralizes most executive-branch IT, so the practical 'tech budget' concentrates there rather than spread across agencies.
  • AI and compute line items are one-time appropriations from the 2026 session — confirm recurring vs. one-time before forecasting.
  • FY2027 (governor's proposed, per NASBO): $12.1B general fund (GF/ITF/USF), +2.4% vs FY2026; $30.7B all funds. Disciplined plan with rainy day funds near $1.6B.

Initiatives & Policy

Office of AI Policy + 'Pro-Human' AI Initiative4

Active / scaling

SB 149 (2024) made Utah the first state with a dedicated Office of Artificial Intelligence Policy and an AI 'Learning Lab' regulatory sandbox (sunset extended to July 2027 by 2025 amendments). In Dec 2025 Gov. Cox announced a $10M 'Pro-Human' AI initiative and a Pro-Human AI Task Force (members named Feb 2026), with workstreams including state-government AI deployment. Agencies need governed, auditable AI — an opening for private/on-prem AI on sensitive workloads.

Dell fit75
Budget strength60
AIPolicyGovernance

Silicon Slopes Data-Center Buildout9

Accelerating

Utah has become a national AI-infrastructure flashpoint: Creekstone's Delta 'gigasite' (planned 10GW+), Box Elder and Nephi (BluSky) projects, DataBank's SL6 expansion, and Texas Instruments' multi-fab semiconductor investment. Gov. Cox has publicly defended the buildout on national-security grounds. This is the strongest tailwind for Dell AI-infrastructure and ISG demand in the state.

Dell fit90
Budget strength80
AI InfrastructureData CentersEconomic Dev

DTS Modernization & MyUtah2

In progress

DTS (~$277M, 750+ projects) launched the MyUtah citizen portal (public Feb 2026), is replacing legacy payroll/HR systems, piloting digital verifiable credentials/digital ID, and standing up an internal AI program to 'give state employees superpowers.' Centralized IT means a single, high-leverage modernization buyer.

Dell fit70
Budget strength65
Digital GovModernizationCustomer Experience

Whole-of-State Cybersecurity + GovRAMP6

Mandatory gate

Utah joined GovRAMP as a participating government (Mar 2025), making GovRAMP authorization the practical cloud-security gate for state data. DTS runs a whole-of-state strategy — endpoint protection deployed to 30,000+ local-government devices plus the executive branch, and 30,000+ people trained. Any Dell cloud/as-a-service offering touching state data should map to GovRAMP early.

Dell fit65
Budget strength55
CybersecurityCloudCompliance

University Research & Health AI (UHAIV)10

Building

The University of Utah is building the Utah Health AI Vault (UHAIV) with state support, and USHE institutions are significant independent research-computing buyers. Higher ed and academic-medical AI are strong, governed-data fits for Dell AI infrastructure and secure compute.

Dell fit85
Budget strength55
Higher EdHealth AIResearch Computing

Procurement & Competition

Utah's IT is unusually centralized. The Division of Technology Services (DTS), within the Department of Government Operations, is the executive-branch IT provider and a primary decision point. Statewide buying runs through the Division of Purchasing and General Services (state cooperative contracts) and, notably, the Utah-led NASPO ValuePoint Cloud Solutions cooperative — Utah is the lead state for the national cloud cooperative used by SLG entities nationwide.

Vehicle / gateWhat it means for Dell
NASPO ValuePoint Cloud and Software Solutions (active Sept 16, 2026); legacy Cloud Solutions extended up to 120 days past Sept 15, 2026 for new-portfolio awardees onlyUtah-led national cooperative; Dell Marketing LP is an awarded supplier on the legacy Cloud Solutions portfolio, which NASPO is replacing with a 10-year Cloud and Software Solutions portfolio active Sept 16, 2026. As of Aug 27, 2026 NASPO listed Dell Marketing's Master Agreement on the new portfolio as not yet executed. Primary cooperative vehicle.
Utah State Cooperative ContractsDivision of Purchasing and General Services pre-competed contracts open to state agencies and local government. Confirm Dell agreements and resellers are current.
GovRAMP authorizationNot a contract, but the practical cloud-security gate for any cloud/as-a-service offering touching state data (Utah joined as a participating government Mar 2025).
Key buying entityRole
Division of Technology Services (DTS)Centralized executive-branch IT, modernization, and cyber — the dominant statewide tech decision point.
Division of Purchasing & General ServicesState procurement authority; runs cooperative contracts and the NASPO lead-state cloud solicitation.
Office of AI Policy (Dept. of Commerce)First-in-nation AI policy office and Learning Lab; shapes how agencies adopt governed AI.
University of Utah / USHEIndependent research-computing and health-AI buyers (UHAIV).
Competitive landscape

Utah is a centralized, cooperative-driven market where DTS concentrates executive-branch decisions and the NASPO cooperative shapes cloud buys. Differentiation comes from GovRAMP-ready offerings, governed/on-prem AI capability for sensitive data, and services that map to the data-center buildout and DTS modernization rather than price alone — Dell already holds NASPO ValuePoint cloud awards to build on.

Power Structure

Decision-makerWhy they matter
Spencer Cox7
Governor · State of Utah
Champions Utah's 'Pro-Human' AI agenda and the data-center buildout; vocal on AI policy and state authority.
Alan Fuller3
State CIO & DTS Director · Division of Technology Services
Leads centralized IT since 2021; drives AI-for-employees, customer experience, digital ID, and whole-of-state cyber.
Phil Bates14
State CISO · Division of Technology Services
State CISO since 2015; runs whole-of-state cyber, the Utah Cyber Center (now extending K-12/LEA support), and is folding AI into state cyber operations.
Zach Boyd4
Director, Office of AI Policy · Utah Dept. of Commerce
Leads the first-in-nation AI policy office and Learning Lab regulatory sandbox that shapes how agencies adopt governed AI.
Division of Purchasing & General Services8
State procurement · Dept. of Government Operations
Owns cooperative contracts and the NASPO lead-state cloud cooperative — key for vehicle strategy.

News & Signals

Sep 2026
Data CenterPolicy
Iron County drafts post-moratorium data-center rules (water/noise/light limits, higher fees) ahead of Nov. 22 expiry24
Iron County, whose data-center moratorium ends Nov. 22 and cannot be extended, is drafting an ordinance for data centers and other large developments. It would set water-use, noise and light-pollution limits and higher permit fees, require companies to center public input, and give the county more control over siting; the planning commission holds a hearing and vote Oct. 8 before a final county commission vote. For a Dell SLG seller it signals a widening local permitting layer that shapes AI and data-center siting and timing across Utah.
Sep 2026
Data CenterPolicy
Mona residents appeal Juab County's permit for $10B data center campus, saying they were 'in the dark'23
Community group Mona Cares filed an appeal on Sept. 15 asking Juab County commissioners to overturn the conditional use permit granted in April for a ~$10B data center campus outside Mona. They argue the county did not give residents 'adequate and actual notice'; the county says it met state notice requirements. For a Dell SLG seller it signals a growing local land-use and transparency fight over one of Utah's largest proposed AI and data-center builds, shaping where compute-intensive workloads can land in the state.
Sep 2026
AIPolicy
Gov. Cox issues open letter urging Congress to set a national 'pro-human' AI framework as a floor, preserving state authority22
In an open letter Monday (Sept. 14), Gov. Spencer Cox called on Congress to establish a consistent national framework for frontier AI — mandatory reporting of serious safety incidents, whistleblower/independent-evaluator protections, rigorous independent model testing, and blocking sales of advanced AI chips and supporting infrastructure to China — while insisting these be a 'national floor, not a ceiling' that preserves states' authority over consumer protection, child safety, workforce, and local AI policy; he explicitly tied the call to Utah's Pro-Human AI Initiative and said he is not seeking a moratorium. The move (amplified via a CBS 'Face the Nation' appearance and referencing the Hugging Face AI-agent cyberattack) positions Utah as a national voice on AI governance and puts Cox somewhat at odds with President Trump. For a Dell SLG seller, a governor actively shaping AI safety/governance policy reinforces sustained state investment in responsible-AI programs, secure infrastructure, and public-sector AI adoption that Utah agencies procure around.
Sep 2026
AIPolicy
GOED and Commerce launch Utah Pro-Human AI Elevation Awards; winners to be named at Dec. 8 AI Summit21
The Governor's Office of Economic Development and the Department of Commerce launched a statewide awards program recognizing Utah companies using AI in line with the state's Pro-Human AI framework, with winners recognized at the Utah AI Summit on Dec. 8. It extends the governor's Pro-Human AI initiative and signals continued state promotion of human-centered AI adoption.
Aug 2026
ProcurementContractsCloud
NASPO and lead state Utah extend legacy Cloud Solutions contract up to 120 days, only for new-portfolio awardees20
The legacy NASPO ValuePoint Cloud Solutions portfolio, led by Utah, was set to expire September 15, 2026; the 120-day extension applies only to suppliers awarded a Master Agreement under the new Cloud and Software Solutions portfolio, which becomes active September 16, 2026. Buyers must negotiate new participating addenda, so Dell resellers should confirm which vehicle and PA each entity is on during the transition.
Aug 2026
PolicyData-CentersLegislature
Utah interim committees hold data-center hearings to set 2027 session focus; no action taken19
Lawmakers on the Economic Development and Workforce Services Interim Committee and a natural resources panel heard from experts, state administrators and residents on data centers' environmental and economic impacts ahead of the January 2027 session, without taking action. DEQ Commissioner Tim Davis noted no single state agency can fully approve a data center. Sellers should expect data-center legislation in 2027 that shapes siting, incentives and the pace of Utah's AI infrastructure buildout.
Jul 30 2026
AIFundingResearch
Gov. Cox launches $5M 'AI Moonshot' grant program for pro-human AI research18
Three tiers (Spark to $50K, Pathfinder to $200K, Moonshot to $1M) fund university-sponsored AI projects in health, natural resources, and autonomous tech; applications open Aug 1–Oct 15. Early-stage compute/infrastructure opportunity as awarded projects scale off state seed funding.
Jul 27 2026
Data CentersWaterPolicy
Public hearing draws opposition to Tooele Valley data-center water-discharge permit17
Dozens of residents opposed a water-discharge permit for the Utah Inland Port Authority's Tooele Valley inland port and data-center project near the Great Salt Lake. Reinforces the water-permitting friction flagged in EO 2026-03 — expect longer siting timelines on new Utah AI-infrastructure projects.
Jul 1 2026
Data CentersLocal GovernmentPolicy
Cache County enacts 180-day data-center moratorium pending new zoning rules16
Cache County passed a precautionary pause (effective immediately, June 23) to write clear zoning definitions before any data center could be sited, following the Box Elder/Stratos backlash. Local government, not just the state, is now a gating factor for AI-infrastructure site selection in Utah.
Jun 2026
Data CentersPolicyLegislation
Legislature's interim committee opens bill file to define/regulate large-scale data centers15
Economic Development & Workforce Services Interim Committee (chair Sen. Ann Millner) voted unanimously (Jun 18) to define large data centers in code; hearings underway, with related water/incentive bills (Owens, Cutler) drafting for the 2027 session unless Cox calls a special session — coming siting/incentive/procurement guardrails to track.
Jun 2026
Data CentersAI
AI data-center backlash: Kevin O'Leary 'Stratos' hyperscale project scaled back ~75%; Congress watching13
Massive AI-infrastructure pipeline continues but is politically contested over water/power/community impact — siting risk to navigate alongside opportunity.
May 2026
Data CentersPolicy
Gov. Cox signs EO 2026-03 establishing statewide data-center development standards12
Directs agencies to protect Great Salt Lake water, ratepayers, and air quality; signals a possible Sept 2026 special session on data-center legislation — new siting/procurement guardrails.
Mar 2026
BudgetAI
Legislature approves ~$31.6B FY2027 budget incl. $15M AI compute capacity1
Dedicated compute funding signals real state AI workloads — an opening for governed AI infrastructure.
Feb 2026
Digital GovAI
MyUtah citizen portal launches publicly; Pro-Human AI Task Force members named5
DTS digital-government modernization goes live; AI governance moves from policy to execution across state services.
Dec 2025
AIPolicy
Gov. Cox unveils $10M 'Pro-Human' AI initiative at Utah's first AI Summit7
State backs AI workforce, curricula, and government deployment — agencies will need governed AI approaches.
Dec 2025
BudgetAI
Gov. Cox proposed a $12.1B general-fund FY2027 budget11
$30.7B all funds, +2.4% vs FY2026; rainy day funds near $1.6B. GRIT Initiative funds a unified e-permitting/information-management system and AI to modernize state services.

Sources

  1. Stateside — 2026 Utah Legislative Session Wrap Up (FY2027 budget)
  2. TechBuzz News — Utah DTS 2025 plan (budget, projects, priorities)
  3. GovTech — Utah CIO Alan Fuller: 'We Now Have to Level Up'
  4. Wikipedia — Utah Artificial Intelligence Policy Act (SB 149)
  5. Utah DTS — MyUtah initiative
  6. GovRAMP — Utah Joins GovRAMP as a Participating Government
  7. CDO Magazine — Utah launches $10M Pro-Human AI initiative
  8. Utah Division of Purchasing — State Cooperative Contracts
  9. ABC4 — Tracking AI data centers being built in Utah
  10. @theU — University of Utah to build Utah Health AI Vault (UHAIV)
  11. NASBO — Summaries of FY2027 Proposed Budgets (June 2026)
  12. Deseret News — Utah executive order sets higher data-center development standards (May 29, 2026)
  13. Roll Call — Data center uproar in Utah, Congress watching (June 11, 2026)
  14. GovTech — Phil Bates, Utah State CISO (bio/role)
  15. Fox 13 / KPCW — Utah lawmakers take first steps to regulate large-scale data centers (June 18, 2026)
  16. Utah Public Radio — As data centers weigh on Utahns' minds, another county has hit pause (July 1, 2026)
  17. Salt Lake Tribune — Yet another data center planned near the Great Salt Lake (July 28, 2026)
  18. Deseret News — Utah offers $5 million in grants to develop pro-human AI (July 30, 2026)
  19. Standard-Examiner (Utah News Dispatch) — Utah lawmakers get a primer on data centers after a summer of protests and political fallout
  20. NASPO ValuePoint — Cloud Solutions portfolio page (8/27/2026 announcement)
  21. Governor's Office of Economic Development — Utah to Honor Companies Driving Human-Centric AI Solutions
  22. KSL — Utah governor calls on Congress to create 'framework' for AI safety
  23. The Salt Lake Tribune — Utah residents challenge Juab County on approval of $10B data center campus
  24. Utah Public Radio — Iron County is making new rules while data center development is paused