Sponsored: Utah’s economy is being shaped by industries that are both nationally strategic and deeply local in impact.
(Adobe Stock, sponsored) | Utah’s population is projected to grow from nearly 3.6 million in 2025 to 5.6 million by 2065.
Utah recently ranked as the number one state in the nation for economic outlook for the 19th year in a row.
Over the last several years, middle market businesses – which represent $13 trillion in annual revenue and nearly a third of private sector employment – have been faced with economic uncertainty and geopolitical headwinds. But despite challenges, businesses in the Beehive State remain resilient and adaptable.
Businesses leaders across the state are progressing with strategic plans amid continued uncertainty, including mergers and acquisitions, strategic investments and hiring plans.
Utah’s resilience and economic progress can be credited to many, various factors, but there are three trends in particular shaping the present state of the economy. From digital infrastructure and population growth to aerospace and defense, Utah’s economy is being shaped by industries that are both nationally strategic and deeply local in impact.
Data center growth
Utah is home to 48 operational data centers, with more being discussed planned and built.
Data centers are capital-intensive, energy-hungry and long-lived, which is why a state like Utah, which has abundant energy potential, is an ideal homebase. With natural gas, solar, geothermal and advanced nuclear capabilities, Utah has the resources to power growth.
Recent discussions around large-scale data center development in Utah have highlighted legitimate concerns around power demand, water usage, air quality and long-term community impact. Those concerns deserve thoughtful attention.
The opportunity is significant, but growth must be paired with responsible planning, transparent stakeholder engagement and infrastructure investment that ensures communities benefit alongside businesses.
If planned responsibly, data centers can bring high-paying jobs, a broader tax base and a wider industry growth to the state.
Population growth and low unemployment
Utah’s population is projected to grow from nearly 3.6 million in 2025 to 5.6 million by 2065. Utah remains one of the top five fastest-growing states, with Utah County experiencing the largest numerical increases.
Utah’s growing population and low unemployment are reinforcing economic growth in several mutually reinforcing ways. A rising population expands the state’s labor force and consumer base, which supports demand for housing, retail, healthcare, education, and local services, helping businesses scale and encouraging new businesses to emerge.
At the same time, low unemployment signals strong labor demand and steady household incomes, supporting public investment in infrastructure and services. Together, these dynamics can attract additional employers (drawn by a deepening talent pool and strong local demand), increase business investment, and sustain a cycle of job creation.
Aerospace and defense
Utah’s aerospace and defense industry is a major economic driver, contributing to more than 500,000 jobs and nearly $100B in total economic output.
Few states are as naturally positioned as Utah to lead in this sector, given the strength of Hill Air Force Base, a growing advanced manufacturing ecosystem and a long-standing culture of engineering and innovation.
At the 2025 Zero Gravity conference in Salt Lake City, 47G President and CEO Aaron Starks noted Utah is home to over 600 companies with government defense contracts.
Last year, JPMorganChase launched its Security and Resiliency Initiative, a $1.5 trillion, 10-year plan to facilitate, finance and invest in industries critical to national economic security and resiliency, including Aerospace and defense. The firm committed to make direct equity investments for an initial amount of $10 billion to help select companies enhance their growth, spur innovation, and accelerate strategic manufacturing.
Utah business leaders should stay abreast of developments that will impact their business and industry at large, and consistently refine projections and strategic plans to navigate the rapidly changing economic environment. An in-depth understanding of the local – and global – market and industry trends will be key to navigating the latter half of the year.
Utah’s next chapter will be defined by how well we balance growth with stewardship, supporting innovation while preserving the qualities that make this state such a compelling place to live, work and build businesses.