In new interview, O’Leary talks that poll and paying for Box Elder County data center
Investor Kevin O'Leary discussed the extensive financing plan for the proposed Stratos Project, a massive data center development in Utah's Box Elder County. He indicated that tenants would fund the initial $15 billion power infrastructure, with the overall project potentially reaching $375 billion. O'Leary also confirmed seeking state tax incentives and suggested potential involvement from the US government and military.
In a recent interview with FOX 13 reporter Nate Carlyle, investor Kevin O'Leary provided an unprecedented level of detail regarding the financial structure of the proposed Stratos Project, a data center development in Box Elder County, Utah. O'Leary, who is the driving force behind the project, discussed how the potentially multi-billion-dollar endeavor would be funded.
O'Leary explained that the project's substantial power infrastructure, estimated at an initial $15 billion, would be financed directly by the tenants utilizing the data center's servers for high-performance computing and artificial intelligence. While he declined to name specific tenants, he stated that negotiations are underway. The overall cost of the project could eventually escalate to between $350 billion and $375 billion. He acknowledged that "hyperscalers" are motivated to invest in such projects to meet the demands of the AI boom.
The investor also touched upon government involvement, confirming that Stratos has secured tax incentives from the state of Utah. Additionally, O'Leary suggested that the US government and military might play a role in the Stratos Project, noting that several government agencies view it as crucial for national defense. A professor of finance, however, raised concerns about the long-term risk of relying on long-term leases from large tech companies, questioning their stability over several decades.