Data Center foes view withdrawal of state water rights application as cynical, strategic ploy

Developers for the Stratos Data Center in Box Elder County, Utah, have withdrawn their application to transfer 1,900 acre-feet of water for industrial use in the Hansel Valley. This decision by O'Leary Digital came on May 7, just days after the Box Elder Commission approved the first step toward the project's development and after state officials received nearly 4,000 protests from Utahns concerned about the project's environmental impact, water usage, and effect on the Great Salt Lake during a statewide drought. However, opponents like former U.S. Senate candidate Caroline Gleich and various advocacy groups, including Grow with the Flow and Friends of the Great Salt Lake, view the withdrawal as a "cynical, strategic ploy." They allege that developer Kevin O'Leary is attempting to circumvent public accountability by resubmitting the application after May 12. On this date, House Bill 60 (Water Rights Amendment), recently passed by the Utah Legislature, goes into effect. This new law restricts the State Engineer from considering "public interest" and "more beneficial use" as grounds for rejecting water rights applications, limiting evaluations to issues directly related to water quantity, quality, or availability. Paul Palandjian, CEO of O'Leary Digital, has confirmed their intent to resubmit the application with additional supporting information.