In 2013, reports said the NSA’s Utah Data Center at Camp Williams could face a new electricity levy after Utah enacted legislation affecting power used at the facility. Contemporary estimates put the possible charge at about $2.4 million a year—but that was a projection, not a confirmed bill or payment.
What the 2013 reports said
Data Center Dynamics and Data Center Knowledge reported on May 20, 2013, that Utah and the NSA were discussing an energy tax connected with the Utah Data Center. The facility was described as a $1.5 billion project, with expected annual electricity costs of roughly $40 million.
The reports said the legislation—identified in the coverage as HB325 or HP325—could permit a levy of up to 6 percent on electricity associated with the site. Applying 6 percent to the reported $40 million estimate produces approximately $2.4 million per year:
| Figure | What it represented |
|---|---|
| $40 million per year | Contemporary estimate of the facility’s annual energy expense, not a verified utility bill |
| 6 percent | Reported potential levy rate |
| $2.4 million per year | Projected result of applying 6 percent to the $40 million estimate; not confirmed tax paid |
How the proposed charge was described
Contemporaneous coverage said the measure directed the charge to the Utah Military Installation Development Authority (MIDA). The utility would collect the amount, with the mechanism allowing recovery from the end user. Data Center Knowledge similarly described MIDA as able to collect up to 6 percent on Rocky Mountain Power electricity used by the facility.
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That description distinguishes a tax or surcharge calculated through the utility from the underlying electricity cost. A $40 million power bill and a possible $2.4 million levy are not the same charge, and the reports do not establish that either figure became the final amount assessed.
Why the tax was described as “unexpected”
The issue was a planning problem as much as a tax dispute. Large data centers are sited partly on assumptions about long-term power prices and other operating costs. Data Center Dynamics attributed the following statement to Harvey Davis, the NSA’s director of installations and logistics, in correspondence reproduced by the publication:
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“The long and short of it is: Long-term stability in the utility rates was a major factor in Utah being selected as our site for our $1.5bn construction at Camp Williams. HP325 [the new law] runs counter to what we expected.”
The point was that a later legal change could alter the economics used when the site was selected. The quotation appears in the trade-press account; the underlying correspondence is not independently established here.
What was expected at the Utah Data Center
Data Center Dynamics reported that the project was expected to draw 65 megawatts at full buildout and contain four 25,000-square-foot data halls. Those were contemporary project expectations, not measurements of the facility’s present-day operation.
The NSA’s official project description places the site at Camp Williams, Utah, and says MIDA received a multi-year infrastructure contract covering planning for power, water, sewer and storm drainage. NSA/CSS described itself as the executive agent for the facility on behalf of the Office of the Director of National Intelligence.
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Did the NSA ultimately pay $2.4 million a year?
The available historical accounts do not answer that question. They document a reported potential tax, the estimated rate and the projected arithmetic, but not a final assessment, payment record or definitive administrative or court resolution.
- The $2.4 million figure is conditional: it assumes a 6 percent charge and a $40 million annual electricity expense.
- The $40 million figure was a contemporary estimate, not a confirmed utility statement.
- No source identified here proves that the full rate was imposed, collected or paid.
How current Utah law differs
Utah Code section 59-37-201, in the version dated May 6, 2026, provides a county excise tax on the delivered value of energy received by qualifying high-impact consumers. An entity that qualifies both as a large-load customer and as a qualifying data center is subject to only one excise tax described in that section. If an energy supplier passes the tax through, it must show the amount as a separately itemized charge. County tax changes also carry notice and effective-date requirements.
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This statute is current context, not proof of how the 2013 NSA matter was settled. The later framework should not be substituted for the law discussed in the 2013 reports.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Utah’s newer large-load policy environment
A Utah House summary dated September 8, 2026 describes several later measures affecting large data centers and other major electricity users:
- SB 132 (2025) requires Public Service Commission review of large-load contracts, separate accounting and protection against shifting large-load electricity costs to other customers.
- HB 76 (2026) requires certain large data centers to report water information before construction and annually after operations begin.
- HB 507 (2026) limits and adds oversight to some incentives; the summary says property-tax incentives are generally capped at 60 percent of new county revenue and may not exceed 80 percent.
The same legislative materials report 48 operating Utah data centers, with more than 920 megawatts of capacity, and seven projects expected to add about 2,600 megawatts. Those figures show why Utah now focuses on cost allocation, water use and incentive oversight, but they do not resolve the NSA’s 2013 tax question.
Quick Recap
What readers can reliably conclude
- The 2013 story concerned a possible electricity-related tax tied to the NSA’s Utah Data Center at Camp Williams.
- Contemporary reports estimated about $40 million in annual energy expense and calculated a possible $2.4 million annual charge at a 6 percent rate.
- MIDA was involved in the project’s infrastructure arrangements, and the reported mechanism involved utility collection with potential end-user pass-through.
- The sources available here do not establish the final amount assessed or paid.
- Utah’s current large-load, data-center and incentive rules are later developments and should not be treated as the outcome of the 2013 dispute.
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