Data center developers move forward despite voter backlash aimed at Sen. Adams, others
O'Leary Digital plans to continue its Box Elder County data center project despite recent voter backlash that led to the defeat of three Utah politicians who supported the plans. The opposition group BEAR is pursuing two lawsuits to halt the project, while newly elected officials express skepticism about its handling and potential tax breaks.
O'Leary Digital confirmed its commitment to advancing the Stratos data center project in Box Elder County, Utah, despite recent primary election results that saw three key political figures, including Utah Senate President Stuart Adams and two Box Elder County Commissioners, lose their re-election bids. These officials had previously voted in favor of measures allowing the project to proceed, and their defeats are widely attributed to voter discontent over their support for the data center initiative.
Paul Palandjian, co-founder and CEO of O'Leary Digital, stated that the company's MIDA designation and master-developer status remain unaffected by the election, and they will continue through established regulatory, permitting, and design processes. The Military Installation Development Authority (MIDA) Board approved resolutions and a tax ordinance for the Stratos Project Area in April, followed by Box Elder County commissioners approving additional resolutions in May, setting the stage for the project.
Brenna Williams of Box Elder Accountability Referendum (BEAR), an opposition group, welcomed the election results as a rebuke to the project and vowed to continue her group's battle, which includes two active lawsuits aimed at halting the data center plans. Palandjian acknowledged voter concerns and committed to working with MIDA and Box Elder County to address potential environmental impacts, water availability, and effects on the Great Salt Lake, while also lamenting what he described as misinformation circulating about the project.
The preliminary winners in the Box Elder County Commission races, Vance Smith and Nathan Tueller, expressed skepticism regarding the project's genesis and handling. Smith criticized the pressure on county officials from state leaders and emphasized the state's control, making it difficult to halt the project outright. Tueller questioned the transparency of the development process and the property and energy tax breaks granted by MIDA, indicating he would oppose non-transparent deals.