Utah County Residents Fight Proposed AI Data Center Megaproject

Utah County Residents Fight Proposed AI Data Center Megaproject

News ClipSlate·Box Elder County, UT·6/1/2026

Kevin O'Leary's O'Leary Digital plans to build the world's largest AI campus, dubbed "Stratos Hyperscale Data Center," on 40,000 acres in Box Elder County, Utah. Despite the Box Elder County Commission's approval of the partnership, residents are vehemently opposing the project due to concerns over water scarcity, environmental impact, and perceived lack of transparency. The widespread opposition has led to a referendum attempt, objections to water rights, and significant political backlash against involved state and local officials.

zoningoppositionenvironmentalannouncementgovernmentlegalelectricitywatermoratorium
Gov: Box Elder County Commission, Military Installation Development Authority, Utah Statehouse, Gov. Spencer Cox, State Sen. Scott Sandall, Utah House Speaker Mike Schultz, Senate President Stuart Adams, Iron County

Kevin O'Leary, through his company O'Leary Digital, is planning to develop the world's largest AI campus, referred to as the "Stratos Hyperscale Data Center" or "Wonder Valley," on 40,000 acres of unincorporated land in Box Elder County, Utah. The project, which involves up to 30 data centers and research facilities, is being pursued in collaboration with the state's Military Installation Development Authority (MIDA) and supported by Governor Spencer Cox, who frames it as a national security imperative in the global AI race.

Local residents, however, are strongly opposing the development, citing concerns over its immense size (more than twice Manhattan), potential strain on Utah's dwindling water resources, especially the Great Salt Lake, and increased utility costs. Community members expressed a sense of betrayal, arguing that the project was pushed through without adequate public deliberation. The Box Elder County Commission controversially approved the AI partnership with MIDA in May, despite significant public outcry and commissioners admitting they lacked sufficient time to assess the project.

Opposition efforts include a grassroots organization, Box Elder Accountability Referendum, which filed for a process to overturn the commission's approval (though the county attorney rejected it, an appeal is planned). Thousands of Utahns have submitted negative comments, protested at the state Capitol, and filed objections to the developers' water rights applications, two of which have since been withdrawn. There is also a planned lawsuit against MIDA. This resistance has generated significant political blowback, causing state politicians, including House Speaker Mike Schultz and Senator Scott Sandall, to backpedal on their support, and leading Governor Cox to issue an executive order requiring a "higher bar for data center development in Utah" regarding environmental and utility impacts. Meanwhile, Iron County in southern Utah has approved a six-month moratorium on new data centers.