Utah Data Center Project Reduced by Half After Public Opposition
A massive data center project, the Stratos data center, in Box Elder County, Utah, has been cut in half from its original plans due to intense local backlash. Developer Kevin O'Leary, chair of O’Leary Digital, cited public outrage over water usage, electricity concerns, and environmental impacts as reasons for the reduction. Utah Senate President Stuart Adams also pressured O'Leary to scale down the project.
The Stratos data center project in Box Elder County, Utah, initially planned to be nearly three times the size of Manhattan, has been reduced by 50% due to significant local opposition. Developer Kevin O’Leary, chairman of O’Leary Digital and a Shark Tank investor, acknowledged missteps in transparency, stating, "We really screwed it up" by not engaging the public sooner. Residents primarily feared the project's impact on local water resources, especially the Great Salt Lake, and expressed concerns about rising electricity bills, air quality, local wildlife, and land.
Utah Senate President Stuart Adams also intervened, requesting O’Leary to cut the project's scope by 75 percent. O'Leary agreed to reduce the planned acreage from 40,000 to approximately 20,000, with 10,000 acres remaining undeveloped. Moving forward, O’Leary claims he will personally oversee all communications to rebuild trust, promising transparency regarding permitting requests and environmental impacts. Adams lauded the compromise as a potential roadmap for responsible data center development, emphasizing the need for written commitments and a thorough review process.
However, some community members remain skeptical. Brenna Williams of the Box Elder Accountability Referendum called the agreement "excellent performance art," believing the reduction was part of the original plan and that Box Elder County remains unsuitable for a hyperscale data center due to water constraints. The Salt Lake Tribune editorial board warned that the "stench attached to the rushed and secret political process" would be difficult to dissipate.
The article also touches on broader trends, noting that public opinion is rapidly shifting against data center development, with a HeatMap poll showing 7 out of 10 Americans opposing data centers near their homes. Illinois Governor J.B. Pritzker's plan to temporarily halt tax breaks for data centers until a legal framework for responsible development is drafted is cited as an example of potential political shifts. O’Leary, for his part, also controversially accused foreign interference, specifically China, of funding the Alliance for a Better Utah to orchestrate a smear campaign, a claim the nonprofit vehemently denied.