A data center caused an uproar in Utah. Congress is watching (and waiting)
Residents in Box Elder County, Utah, have protested a large data center project (Stratos Project) due to concerns about water usage in a drought-stricken state and massive electricity demands. Following public outcry, Utah Governor Spencer Cox issued a statewide data center framework, and state officials negotiated with investor Kevin O'Leary to significantly scale back the project. The situation has prompted congressional attention, with lawmakers discussing the need for federal regulations on data center energy and water consumption, though no consensus has been reached.
Residents in Utah, a state grappling with severe drought, have become central to a national debate over data center development, exemplified by intense protests against the proposed Stratos Project in Box Elder County. The data center, initially planned to be vast, faced significant public backlash over its projected water and electricity demands. Despite developers' claims of a closed-loop cooling system, residents, environmentalists like Caroline Gleich, and some politicians expressed fears that the project would exacerbate the state's water crisis, already under a statewide emergency declaration by Governor Spencer Cox. Gleich highlighted concerns about the shrinking Great Salt Lake and the potential for toxic dust.
The public outcry led to a dramatic scaling back of the Stratos Project by 75 percent, following negotiations between Utah Senate President J. Stuart Adams and investor Kevin O'Leary. O'Leary, who initially dismissed protestors, later admitted to "huge mistakes" in not listening to local constituents. In response to the controversy, Governor Cox also signed an executive order establishing a statewide "data center framework" aimed at protecting water resources.
The Utah situation has drawn attention from Washington D.C., where lawmakers are beginning to consider federal oversight for data centers. Senator Josh Hawley (R-Mo.) and Senator Richard Blumenthal (D-Conn.) introduced the GRID Act, which would require new data centers to use separate power sources. Senator Richard J. Durbin (D-Ill.) proposed a bill for disclosure of energy and water usage. While some, like Representative Alexandria Ocasio-Cortez (D-N.Y.) and Senator Bernie Sanders (I-Vt.), advocate for a pause on data center construction until federal regulations are in place, others, including Senator John Curtis (R-Utah) and EPA Administrator Lee Zeldin, emphasize that most decisions should remain at the local level due to varying regional conditions. Lawmakers generally agree that more data is needed before comprehensive federal legislation can be enacted, though state and local governments are expected to continue addressing these issues independently.