Kevin O’Leary agrees to cut Box Elder County data center project area in half

Kevin O’Leary agrees to cut Box Elder County data center project area in half

News ClipKSL NewsRadio·Box Elder County, UT·6/4/2026

Businessman Kevin O'Leary has agreed to reduce the Box Elder County data center project's footprint by half to 20,000 acres, responding to concerns from Utah Senate President Stuart Adams. This decision comes amidst ongoing opposition, including a recently filed lawsuit challenging county approvals for the project. Critics continue to voice worries about the project's potential impact on water supplies and air quality.

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Gov: Utah Senate, Box Elder County, Military Installation Development Authority

Businessman Kevin O'Leary, the leader behind the controversial Box Elder County data center proposal, has agreed to significantly reduce the project's planned area. In a letter to Utah Senate President Stuart Adams, O'Leary committed to cutting the project's footprint from approximately 40,000 acres to 20,000 acres. This reduction involves removing two of the three originally proposed parcels: a 19,430-acre site in Locomotive Springs and a 620-acre parcel near I-84, leaving a 20,000-acre site in the Hansel Valley.

Paul Palandjian, CEO of O'Leary Digital, the entity pursuing the project, stated that the revised plan, which includes about 10,000 acres for the data center and associated power facilities with another 10,000 acres of preserved land, effectively meets Senate President Adams' request for a 10,000-acre development. O'Leary also reiterated commitments to using advanced technology for water conservation and cooperating with state environmental regulators. The project, known as the Stratos Project Area, is touted as vital for national security and economic development, intending to host up to 9 gigawatts of power generation.

However, the project faces strong opposition. Critics express concerns over potential negative impacts on air quality and already dwindling water supplies, particularly affecting the Great Salt Lake. They also argue that the proposal was rushed and lacked sufficient study. Recently, opponents filed a lawsuit challenging Box Elder County commissioners' decision on May 4 to approve resolutions 26-11 and 26-12, which allow the project to move forward despite public opposition. Utah's Military Installation Development Authority (MIDA) had also previously approved key resolutions and a tax ordinance for the project.