Kevin O'Leary discusses financing for Box Elder County data center
Investor Kevin O'Leary discusses the financing plans for the massive Strato's data center project in Box Elder County, Utah, which could ultimately cost up to $375 billion. O'Leary expects tenants, primarily hyperscalers, to help finance the project through long-term leases, with the initial 1.4 gigawatt stage estimated at $15 billion. The project has already received tax incentives from the state of Utah, and there's a possibility of the US government and military leasing space.
Investor Kevin O'Leary, the driving force behind the Strato's data center project in Box Elder County, Utah, provided new details on how he plans to finance the ambitious development. The project's first phase, encompassing 1.4 gigawatts of power, is projected to cost approximately $15 billion, with the entire complex potentially reaching $375 billion in today's figures.
O'Leary explained to Fox 13 News investigative reporter Nate Carlisle that a significant portion of the financing is expected to come from future tenants, specifically hyperscale cloud computing and artificial intelligence companies, through long-term leases. He clarified that no tenants have committed yet, as it is too early in the development process. O'Leary dismissed concerns about tenants pulling out or an AI bubble, stating that tenants essentially fund the project with long-term commitments.
Stan Van Nieuwerburgh, a professor of finance at Columbia University, acknowledged the risk associated with the long-term viability of large hyperscalers. The project has already secured tax incentives from the state of Utah, and O'Leary indicated that multiple US government and military agencies have expressed interest in potentially leasing space, although federal financing remains uncertain.