Second water rights request withdrawn for embattled Box Elder County data center proposal

Second water rights request withdrawn for embattled Box Elder County data center proposal

News ClipKSL.com·Box Elder County, UT·5/28/2026

A second water rights request for the proposed Box Elder County data center in Utah has been withdrawn, following an earlier withdrawal of a similar request. Public opposition, citing concerns over water usage by the facility, is credited with prompting these withdrawals. The project, backed by Kevin O'Leary, continues to face scrutiny despite proponents' claims of minimal water use and national security benefits.

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Gov: Utah Division of Water Rights

The entity behind a proposed data center in Box Elder County, Utah, has withdrawn a second application for water rights for the controversial project. This follows an earlier withdrawal of a water rights request by Bar H Ranch. The latest application, submitted by Murray Hollow L.C. for 11 acre-feet per year, generated nearly 700 formal protest letters before its withdrawal on May 22, according to the Utah Division of Water Rights.

Deeda Seed of the Center for Biological Diversity, a vocal critic, attributed the withdrawals to the strong community opposition, suggesting developers prefer to refile quietly rather than face extensive public records of protest. Seed advocates for an aquifer study in the Hansel Valley, the project area, before any industrial water rights are granted.

Canadian businessman Kevin O'Leary and O'Leary Digital are leading the data center initiative, which includes plans for up to 9 gigawatts of power generation. Proponents argue the project is crucial for national security and economic development, promising advanced technology to minimize water use and compliance with Utah's environmental guidelines. Critics, however, remain concerned about the significant water demands and other potential environmental impacts of the facility.