Utah School District Split: $14 Million Data Center Tax Deal Stays With One of Three New Districts

More than $14 million in annual property tax revenue will flow to a single new school district in Utah County once two long-term tax deals with Meta expire. This windfall is tied to a data center in Eagle Mountain, a city that will fall within the boundaries of the Lake Mountain School District when the state’s largest district, Alpine, splits into three separate entities on July 1, 2027. The other two new districts, Timpanogos and Aspen Peaks, will not inherit this future income stream.

The split follows two 2024 ballot propositions approved by Utah County voters. Proposition 11 created the Aspen Peaks district, covering American Fork, Cedar Hills, Alpine, Highland, Lehi, and part of Draper. Proposition 14 formed the Lake Mountain district, which includes Saratoga Springs, Eagle Mountain, Fairfield, and Cedar Fort. The remaining areas, including Orem, Lindon, Pleasant Grove, and Vineyard, form the Timpanogos School District. Because the Meta campus sits inside Lake Mountain’s geographic area, Evan Berrett, director of legislative and strategic services for Eagle Mountain, stated that the district’s 24 schools will retain the tax revenue.

The financial arrangement stems from two separate tax increment financing agreements. The first deal, established in 2018, allowed Meta to build the initial facility by returning 80% of Alpine’s property tax share to the company for up to 40 years, capped at $150 million. A second agreement struck in November 2025 permits Meta to expand the campus, involving a 55% tax transfer with a total break of $496 million. Once these caps are reached, Alpine’s successors will collect the full property tax value. Lake Mountain will assume these obligations at the same rates.

The new districts are not yet official, but Lake Mountain has already secured a $600,000 donation from Meta to buy three acres for a future elementary school. This funding comes from Meta’s $1 billion Future is for Everyone Fund, which supports communities hosting the company’s data centers. Under the 2025 expansion deal, Meta also agreed to a one-time $1.5 million donation to Lake Mountain and an annual $50,000 contribution to the Lake Mountain Foundation for the duration of the agreement. These funds are expected to be distributed by the end of this year.

The other two districts received smaller one-time payments of $10,000 each as part of the 2025 negotiations. Timpanogos officials said the missing data center revenue is not sufficient to determine school closures, though the district plans a formal boundary study before the 2027-2028 school year that could lead to consolidations. Aspen Peaks spokesperson Rich Stowell described the situation as appropriate, noting that the district views itself as a partner with its neighbors. Meta’s spokesperson said the company is investing in students throughout the communities it serves to ensure the region’s overall success.