Cox calls for 'major reform' to MIDA after data center pushback

Utah Governor Spencer Cox has expressed strong support for significant reforms to the state's Military Installation Development Authority (MIDA), following extensive public criticism over its handling of the controversial Stratos Project Area data center in Box Elder County. During a news conference, Governor Cox stated that MIDA's process regarding the AI data center "was not good" and indicated he is working with the Legislature to address regulatory gaps in data center development across Utah.

The governor's shift in stance comes after months of public pushback against the project, which is backed by businessman Kevin O'Leary. Critics have cited a lack of transparency early in the process and environmental concerns, including water usage in the arid state. The backlash has already had political consequences, with Utah Senate President Stuart Adams, who chairs the MIDA board, losing his primary reelection bid, a defeat widely attributed to his role in the data center's approval.

In addition to MIDA reforms, Governor Cox announced support for legislation to regulate data center heat emissions and mandate environmental protections. He specifically backed requirements for data centers to install closed-loop water systems to minimize water consumption. State officials, including Tim Davis of the Department of Environmental Quality and Jake Garfield of the Office of Energy Development, informed lawmakers about existing regulatory gaps concerning data center impacts like heat and noise, while also noting improvements in water efficiency with newer data center technologies.

Rep. Jason Thompson, R-River Heights, is reportedly drafting a bill to limit MIDA's authority to projects directly impacting military installations and security, excluding recreational or data center developments unless federally owned. The proposed Stratos data center, currently in its first phase, plans to use a closed-loop system, but its water use permit is still pending.