JPMorgan Chase and Starwood Property Trust are financing a $2 billion loan for the development of a large-scale AI-focused data center in Utah. The project, led by CIM Group and Novva Data Centers, spans 100 acres in West Jordan and is among the biggest construction loans in recent years. Designed to support the rising demand for AI-driven computing, the facility is expected to deliver 175 megawatts of continuous power.
This marks the second major data center loan exceeding $2 billion this year. In January, JPMorgan secured a $2.3 billion loan for a facility in Abilene, Texas. Historically, most data center loans have been under $1 billion, but increasing AI-driven computing needs and advanced semiconductor technology have led to larger projects with higher costs. Developers are mitigating risks through pre-leased agreements before construction, ensuring financial stability for large-scale initiatives.
The Utah data center project began in 2020 without any initial leasing agreements. Its first phase was completed in 2023, and full operations are expected by the end of 2026. Utah was selected due to its low risk of natural disasters, making it an ideal location for critical infrastructure.
However, concerns over water consumption remain, given the high cooling demands of AI data centers. To address this, the facility will incorporate a water recirculation system to efficiently cool its servers while minimizing water usage.
The increasing investment in AI data centers reflects the growing reliance on artificial intelligence and cloud computing. As companies race to develop and deploy AI models, the need for high-performance computing infrastructure continues to rise. The Utah facility is set to play a key role in supporting these advancements, reinforcing the importance of large-scale data centers in the evolving tech landscape.
