Utah Approves Large AI Data Center Project Despite Water, Energy Concerns

Utah Approves Large AI Data Center Project Despite Water, Energy Concerns

News ClipThe Intercept·Box Elder County, UT·5/29/2026

A massive 40,000-acre AI data center, the Stratos project backed by Kevin O'Leary, has been approved by a quasi-governmental agency in northwestern Utah. The project faces significant public opposition due to its immense water and energy demands in a drought-stricken region. The Utah legislature is now considering measures to require more reporting and studies on data center impacts amidst calls for moratoriums.

environmentalwaterelectricitymoratoriumgovernmentannouncementoppositionzoning
Gov: Utah Legislature

The Intercept reports on the growing national debate surrounding data center development, highlighting a controversial 40,000-acre AI data center project in northwestern Utah, known as Stratos. Backed by venture capitalist Kevin O’Leary, the project was approved by a Utah quasi-governmental agency despite fierce local opposition. O’Leary defends the project, framing it as a national security imperative in the race against China for AI supremacy, and dismisses environmental concerns and local protests as "misinformed" or "orchestrated."

However, critics like Jim Walsh, policy director of Food and Water Watch, argue that the Stratos project exemplifies "data center largesse." Walsh emphasizes the immense environmental and resource impacts, noting the project's proximity to the drought-stricken Great Salt Lake and its projected demands for water equivalent to over 20,000 Utah households and a doubling of the state's energy demand. He also points out that the project's reliance on natural gas from the Ruby Pipeline will perpetuate fracking in the Western U.S., leading to further water pollution and resource depletion.

The article details how communities, from Utah to Georgia, are increasingly demanding data center moratoriums as concerns about water scarcity, energy consumption, and environmental pollution escalate beyond local zoning disputes into national political discourse. In response to the backlash over the Stratos project, the Utah legislature is reportedly considering new requirements for reporting and studies on data center impacts.

Walsh counters O'Leary's national security argument by asserting that true security encompasses clean air, water, and sustainable communities, which he believes are jeopardized by such large-scale data center developments. He criticizes developers for prioritizing inexpensive energy and expedited permits over long-term community impacts, especially in water-stressed regions. The article also briefly mentions a data center in Fayette County, Georgia, which drained 30 million gallons of water, as another example of community concerns.