Box Elder signs off on contentious data center, citing property rights and zoning

The Box Elder County Commission recently approved a controversial data center and energy campus project in Box Elder County, Utah, despite strong public opposition. Hundreds of residents protested the decision, packing the county fairgrounds and shouting slogans, forcing commissioners to move to a remote video call for the vote. Commissioners, including Lee Perry, stated their vote was centered on personal property rights rather than being for or against the data center itself. The project is a collaboration between an LLC under O’Leary Digital, owned by investor Kevin O’Leary, and Utah’s Military Installation Development Authority (MIDA). The site spans over 50,000 acres near the Great Salt Lake, and state law mandates local government approval for MIDA developments involving public or private land. The data center is projected to be Utah’s largest, generating up to 8 gigawatts of power using natural gas, an amount significantly more than the entire state's current annual electricity use. Opposition focuses heavily on environmental concerns, particularly water usage, air quality, and the potential impact on the Great Salt Lake. Campaigner Deeda Seed from the Center for Biological Diversity, along with over 1,500 individuals, has filed protests with the Utah Division of Water Rights regarding the proposed change of water rights from agricultural to industrial. While O'Leary Digital co-founder and CEO Paul Palandjian claims the project will use a water-efficient closed-loop chilling system and even contribute water to the Great Salt Lake, critics like Kerri Hickenbottom of the University of Arizona express skepticism about a 100% air-cooled system. Gov. Spencer Cox has publicly supported the project, framing AI development as a national security imperative and dismissing some water concerns as misinformation. However, advocates, including lawyers and citizens, are contesting the water rights transfer and are prepared to pursue litigation if the state proceeds with the change. The first phase of development is expected to commence within months.