Data center: New Utah water rights law gives less weight to pushback citing broad impact
A new Utah law, HB60, has been enacted, limiting the factors the State Engineer can consider when evaluating water rights applications, primarily to water pollution and scarcity. This change comes as Bar H Ranch withdrew its application for water rights for the massive Stratos data center project north of the Great Salt Lake, following thousands of protests. Despite the withdrawal, Bar H Ranch intends to re-apply, with environmental groups concerned about the law's impact on their ability to protect wildlife and the Great Salt Lake.
Utah has enacted a new law, HB60, significantly altering the process for evaluating water rights applications. Effective May 6, the legislation restricts the State Engineer's ability to consider broad public welfare arguments, narrowing the focus to issues of water pollution and scarcity. This development follows a recent withdrawal by Bar H Ranch of its application to divert water from a stream north of the Great Salt Lake for the proposed 40,000-acre Stratos data center.
The withdrawal occurred after thousands of Utahns protested the application, which sought to reallocate water from irrigation to industrial use. Despite the setback, a representative for Bar H Ranch stated their full intent to move forward with the project and resubmit an application with additional information. The Stratos project, backed by celebrity investor Kevin O’Leary, proposes to be powered by its own natural gas plant, generating 9 gigawatts of energy, and plans to use a closed-loop cooling system to minimize water consumption.
Environmental organizations hold mixed views on the impact of HB60. Zachary Frankel, executive director of the Utah Rivers Council, views the law as a major setback, warning it removes a regulatory tool vital for protecting the Great Salt Lake from increased dust storms. Conversely, Rob Dubuc, general counsel for Friends of the Great Salt Lake, believes the new law does not hinder his organization's ability to protest, as they typically rely on other intact parts of the law, having already objected to the Stratos plan due to groundwater concerns and lack of detail.