Kevin O’Leary-backed Utah data center project seeks new water right

The Stratos data center project, backed by investor Kevin O’Leary, is facing significant opposition as it seeks a new water right in Utah’s Box Elder County. Murray Hollow L.C. submitted an application on April 28 to the Utah Division of Water Rights to convert approximately 11 acre-feet per year of water from domestic and livestock use to industrial use. This water is intended for a natural gas plant and the associated data center's closed-loop cooling system.

The application has already drawn around 30 protest letters, with residents from multiple counties and Utah Sen. Nate Blouin (D-Millcreek) expressing concerns over the state’s drought conditions and the declining Great Salt Lake. This current request follows a larger application by Bar H Ranch for about 1,900 acre-feet, which was withdrawn earlier this month after receiving nearly 4,000 protests; Bar H Ranch reportedly plans to refile. Sen. Blouin highlighted the direct impact of the Great Salt Lake's decline on his constituents, citing degraded air quality and public health costs.

The proposed 7.5-gigawatt natural gas power plant, also known as "Wonder Valley," would consume a significant amount of power, exceeding Utah's current statewide consumption of 4 gigawatts. Despite the public outcry, a new state policy, House Bill 60, passed this year, limits the state engineer’s ability to consider protest concerns that are also handled by other state agencies, such as air quality and wildlife. The number of protests received also does not factor into the decision-making process for water rights applications.