Kevin O'Leary's Utah data center project faces opposition over water and energy

Kevin O'Leary's Utah data center project faces opposition over water and energy

News ClipDeseret News·Box Elder County, UT·5/12/2026

Kevin O'Leary's proposed data center project in northern Utah faces significant opposition over its immense water and energy demands. While the project received initial approvals from state and county entities, a water rights transfer application was withdrawn after thousands of protest filings. Residents have now submitted a referendum application to overturn the county's decision, indicating ongoing local resistance.

waterenvironmentalzoningoppositionelectricitygovernment
Gov: Military Installation Development Authority, Box Elder County Commission, Utah Division of Water Rights, Spencer Cox
Kevin O'Leary's proposal for a large data center complex in northern Utah has ignited widespread controversy, primarily due to concerns about its massive water and energy consumption. The project, known as Stratos, plans to consume 9 gigawatts of energy, exceeding Utah's entire peak usage, and utilize privately held agricultural water rights, sparking a "firestorm of controversy" among residents and environmental advocates. The project has received unanimous approval from the Military Installation Development Authority (MIDA) and the Box Elder County Commission, despite both entities reportedly not allowing public comment during their meetings. However, an application from Bar H Ranch to transfer 1,900 acre-feet of water rights for the project was withdrawn after attracting approximately 3,800 formal protest filings, though Bar H Ranch intends to resubmit it. Opponents, including Friends of the Great Salt Lake and Grow the Flow, argue that transferring agricultural water rights will significantly increase water consumption in a state experiencing severe drought and could further endanger the Great Salt Lake. O'Leary and Utah Governor Spencer Cox have downplayed these concerns, asserting that the project can proceed responsibly and that much of the opposition is based on misinformation. A referendum application has been submitted to overturn the Box Elder County Commission's decision, which, if successful, could void negotiated concessions and conditions. The article also draws parallels to O'Leary's "Wonder Valley" data center project in Alberta, Canada, which has faced similar pushback, environmental concerns regarding emissions, and significant delays, despite a governmental exemption from a full environmental impact assessment.