Amid backlash, O’Leary Digital CEO defends Box Elder County data center project
The CEO of O'Leary Digital defended the proposed Stratos Project data center in Box Elder County, Utah, amid significant backlash over its potential environmental impacts, particularly water usage. He welcomed rigorous review from various regulatory bodies and emphasized landowner support, while also highlighting the project's national defense importance and ongoing permitting processes. Opposition continues through protests and formal objections to water rights transfers.
Paul Palandjian, CEO and co-founder of O'Leary Digital, has staunchly defended the controversial Stratos Project, a proposed data center and power-generation complex in Box Elder County, Utah. The project has faced fierce opposition from environmental organizations and local Utahns concerned about its impact on limited water supplies, the Great Salt Lake, and local temperatures. Palandjian stated that the company welcomes rigorous environmental review and acknowledges legitimate protests, though he condemns threats against company leaders and public officials.
The project, alternately known as the Stratos Project Area and Wonder Valley Utah, involves developing a data center and 7.5 to 9 gigawatts of power capacity on 40,000 acres, with a portion fueled by natural gas. Palandjian stressed that all landowners within the Military Installation Development Authority (MIDA) project zone support the initiative, viewing it as an opportunity to monetize marginal land. He also underscored the project's strategic importance for national defense, as it is a direct response to a U.S. Air Force request for compute infrastructure.
The development is moving through standard permitting and review processes, with MIDA having approved project guidelines and a tax-incentive plan, and Box Elder County commissioners passing resolutions to allow the initiative to proceed. Various state bodies, including the Utah Divisions of Water Rights, Air Quality, Water Quality, Drinking Water, and Wildlife Resources, will provide oversight. The project developers claim it will use less water than current agricultural users, though initial water rights transfer requests have generated thousands of protests.