Utah's Stratos project draws warnings from Virginia's 'Data Center Alley'
The Stratos data center project in Box Elder County, Utah, backed by Kevin O'Leary, is facing significant scrutiny from Virginia data center experts and local residents due to concerns over noise, immense power consumption, water usage, and emissions. Critics highlight O'Leary's lack of specific data on environmental impacts and question the favorable tax deal granted by Utah's Military Installation Development Authority, comparing the project's massive scale to existing data center development in Loudoun County, Virginia.
The proposed Stratos AI data center project in Box Elder County, Utah, spearheaded by celebrity investor Kevin O'Leary, is drawing intense scrutiny from both local Utah residents and experts in Loudoun County, Virginia, often dubbed "Data Center Alley." Critics in Virginia, including Mike Turner, vice chair of the Loudoun County Board of Supervisors, warn Utah about potential negative impacts related to noise, massive power and water consumption, emissions, appearance, and proximity to residential areas, drawing parallels to their own experiences with extensive data center development.
O'Leary has attempted to address some concerns by releasing renderings and promising a 1,000-foot property buffer, but he has not provided specific data on projected water usage or annual emissions, stating these details depend on the final design and tenant. He claims the facility will be self-powered through a mix of natural gas, battery storage, and solar, not drawing from the Utah grid. However, his confirmed maximum power use of 9 gigawatts is a significant point of contention, as it far exceeds the combined power usage of all 200-plus data centers in Loudoun County and is more than double Utah's current average statewide electricity use.
Further concerns have been raised about the financial arrangement for the Stratos project, where Utah's Military Installation Development Authority (MIDA) approved a reduced energy tax of 0.5% (down from a standard 6%) and an agreement to return 80% of key property tax revenue to O'Leary's company. This deal has been criticized as unfavorable for Utah, with Turner remarking, "It keeps getting worse and worse." Utah Governor Spencer Cox initially expressed frustration with development delays but later acknowledged the validity of public concerns, indicating the public's pushback is having an effect on the project's trajectory.