
After delaying a decision, Box Elder County is set to vote on a hyperscale data center project. Here’s what we know.
News ClipThe Salt Lake Tribune·Box Elder County, UT·5/4/2026
Box Elder County commissioners are set to vote on the "Stratos Project," a proposed hyperscale data center and energy campus backed by MIDA and O'Leary Digital. The project, planned for Hansel Valley, faces significant debate over its substantial water and electricity demands, primarily from natural gas. Opponents have raised environmental concerns and water scarcity issues, while proponents highlight economic benefits and military infrastructure funding.
zoningoppositionenvironmentalannouncementgovernmentelectricitywater
Gov: Box Elder County Commission, Military Installation Development Authority, Utah Division of Water Rights, Environmental Protection Agency, Utah Trust Lands Administration, Department of Defense
The Box Elder County Commission is scheduled to vote on the "Stratos Project," a proposed hyperscale data center and energy campus in Hansel Valley. Backed by the Military Installation Development Authority (MIDA) and investor Kevin O’Leary through O’Leary Digital, the project has been postponed once and is now up for a key decision. Proponents, including MIDA Executive Director Paul Morris, argue the 40,000-acre development would fund modern buildings at Hill Air Force Base, create 2,000 jobs, and generate significant revenue for MIDA ($49 million/year) and the county ($30 million/year initially).
However, the project faces considerable opposition, primarily concerning its environmental impact and resource demands. The project requires substantial water rights, with one application for 1,900 acre-feet already filed, and plans to secure up to 10,000 acre-feet. While developers like West GenCo co-founder Austin Pritchett claim minimal actual water usage via closed-loop cooling and shared resources, hundreds of protests have been lodged with the Utah Division of Water Rights, citing concerns over Utah’s water shortages and the drying Great Salt Lake.
Energy consumption is another major issue. The first phase alone would require 3 gigawatts of power, potentially rising to 9 gigawatts at full buildout—far exceeding most existing power plants in Utah. The project plans to generate its own power using natural gas supplied by TallGrass Energy via the Ruby Pipeline, an approach allowed by a recent state law. Climate scientist Logan Mitchell of Utah Clean Energy expressed doubts, warning of increased natural gas prices, the risk of stranded assets due to climate change, and nitrogen oxide emissions contributing to air pollution in the region, despite the site being outside a nonattainment zone.
MIDA, a quasi-governmental body, effectively acts as the local planning and land-use authority for its project areas, including the proposed Stratos site. It has approved development agreements with O’Leary Digital, offering significant tax incentives, including a reduced energy use tax and rebates on property taxes. The project is expected to create 4,000 temporary construction jobs and 2,000 permanent positions, with the developer prepaying Box Elder County $5.4 million annually for the first three years to offset infrastructure and emergency service costs.