Amid backlash, O'Leary Digital CEO defends Box Elder County data center project
O'Leary Digital CEO Paul Palandjian defended the proposed Box Elder County data center project, which faces backlash from environmental groups concerned about water usage and other impacts. Palandjian highlighted the project's role in national security, regulatory oversight, and the unanimous support of landowners. Despite ongoing opposition, local government entities have approved initial steps for the development.
Paul Palandjian, CEO and co-founder of O'Leary Digital, has staunchly defended the controversial Box Elder County data center project in Utah, amid significant public backlash. Opponents, including environmental organizations and local residents, express deep concerns that the "Stratos Project Area" or "Wonder Valley Utah" facility would strain northern Utah's limited water supplies, impact the Great Salt Lake, and increase local temperatures. They also question the project's potential environmental footprint, despite developers' claims of using less water than current agricultural users on the 40,000-acre site.
Palandjian emphasizes the project's critical role in national security, asserting that it would bolster military cloud-computing capabilities, with its proximity to defense entities like Hill Air Force Base. He welcomes rigorous review, noting that the project is subject to extensive regulatory oversight from state bodies such as the Utah Division of Water Rights and the Utah Division of Air Quality. He also highlighted the unanimous support from landowners who view the project as an opportunity to monetize marginal land.
Despite formal protests against water rights transfer applications, the project has advanced. The Military Installation Development Authority (MIDA) approved development guidelines and a tax-incentive plan on April 24, and Box Elder County commissioners passed two resolutions on May 4, allowing the initiative to proceed. Palandjian acknowledges legitimate peaceful protest but condemns threats reportedly made against company leaders and public officials.