Utah recently ranked as the nation’s top state for economic outlook, marking its 19th consecutive year in the top position.
Over the last several years, middle market businesses, which represent $13 trillion in annual revenue and nearly a third of private sector employment, have navigated economic uncertainty, geopolitical headwinds, and changing market conditions. Despite these challenges, businesses across the Beehive State have remained resilient, adaptable, and focused on growth.
Business leaders across the state continue to move forward with strategic plans amid continued uncertainty, including mergers and acquisitions, strategic investments, and hiring initiatives.
Utah’s resilience and economic progress can be credited to many factors, but three trends in particular are shaping the state’s economic future. From digital infrastructure and population growth to aerospace and defense, Utah’s economy is increasingly being shaped by industries that are both nationally strategic and integral to the state’s long-term prosperity.
Digital Infrastructure and Responsible Growth
Utah is emerging as a hub for digital infrastructure, including data centers that support cloud computing, AI, cybersecurity, and other technologies powering the modern economy.
These facilities are capital-intensive, energy-intensive, and long-lived investments. Utah’s strong energy resources, business-friendly environment, strategic location, and skilled workforce position the state to participate in the next generation of digital infrastructure investment. The state continues to explore a diverse mix of energy solutions, including natural gas, solar, geothermal, and emerging advanced nuclear technologies.
At the same time, recent discussions surrounding large-scale data center development have underscored an important reality: Utahns deeply value the state’s natural beauty, outdoor heritage, and quality of life. Questions surrounding water usage, energy demand, air quality, land use, and long-term community impact are not obstacles to overcome; they are important considerations that deserve transparent public dialogue and rigorous evaluation.
Utah’s economic success has always been rooted in balancing growth with stewardship. As investment in digital infrastructure accelerates, the opportunity is significant, but growth must be thoughtful, transparent, and aligned with community priorities. The challenge is ensuring future investment reflects the values that have long defined the state: innovation, stewardship, transparency, and respect for community.
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 population gains.
Utah’s growing population and low unemployment are supporting economic growth in several important 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 reflects strong labor demand and steady household incomes, helping support continued 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 $100 billion 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 that Utah is home to more than 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 deploying an initial $10 billion of direct equity investments to help select companies enhance growth, spur innovation, and accelerate strategic manufacturing.
Utah business leaders should stay abreast of developments that will impact their businesses and industries at large, and consistently refine projections and strategic plans to navigate the rapidly changing economic environment. An in-depth understanding of local and global market trends will be critical to navigating the second 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.