Utah Governor Tightens Rules for Kevin O'Leary's Giant AI Data Center Amid Backlash
The proposed Stratos Project, a 40,000-acre hyperscale AI data center in Box Elder County, Utah, backed by "Shark Tank" investor Kevin O'Leary, has sparked fierce opposition over its massive energy and water demands. The facility would require up to 9 gigawatts of power and risk harming the Great Salt Lake ecosystem. After public protests and political pressure, Utah Governor Spencer Cox signed an executive order tightening data center regulations, and O'Leary agreed to halve the project's size, though environmental reviews and permits remain pending.
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Kevin O'Leary agrees to cut size of Utah data center in half after backlash
Kevin O'Leary, the 'Shark Tank' investor, has agreed to scale back his proposed Stratos data center project in Box Elder County, Utah, by half after pressure from Utah Senate President J. Stuart Adams. The initial 40,000-acre project, one of the largest AI infrastructure projects in the US, required 7.5 to 9 gigawatts of power and sparked community backlash over rising energy prices, water use, and environmental damage. O'Leary pledged to leave most of the remaining area as open space and dedicate new water to the Great Salt Lake. Adams called the concessions a positive step, but noted that no permits have been applied for and the project still requires environmental review and written commitments before moving forward.
All Content from Business InsiderO'Leary to Shrink Utah AI Data Center After Backlash
Business mogul and 'Shark Tank' star Kevin O'Leary announced late Wednesday that he is willing to scale back his planned 40,000-acre artificial intelligence data center campus in Utah. The decision comes after significant backlash from local communities and politicians over the project's massive size and potential environmental impact. O'Leary told NBC News that he 'is going to have to' slim down the development amid the political pushback. The project, which was initially proposed as one of the largest AI data center campuses in the world, has faced criticism over land use, water consumption, and energy demands. O'Leary's concession marks a notable reversal as he seeks to address concerns while still advancing the facility.
Just In NewsKevin O'Leary refuses to abandon Utah AI data center despite lawmaker's call for 75% reduction
Kevin O'Leary's Stratos data center project in Box Elder County, Utah, faces a major challenge after Utah Senate President J. Stuart Adams proposed a 75% reduction in its size, from 40,000 to 10,000 acres, along with stricter environmental and transparency requirements. O'Leary's company said it was caught off guard by the letter, and O'Leary told The Salt Lake Tribune he is 'not walking away' from the project, calling the proposed cut 'outrageous.' The project, which would require 7.5 to 9 gigawatts of power, has drawn opposition from residents and environmentalists over water use, air quality, and energy demands. Utah Governor Spencer Cox recently signed an executive order raising standards for data center development in the state. O'Leary plans to respond personally to Adams before the end of the week.
All Content from Business InsiderUtah Governor Tightens Rules for Kevin O'Leary's Giant AI Data Center Amid Community Opposition
Utah Governor Spencer Cox signed an executive order establishing stricter parameters for data center development, directly responding to the controversial Stratos Project (also called 'Wonder Valley') backed by 'Shark Tank' investor Kevin O'Leary. The 40,000-acre hyperscale data center campus in Box Elder County, which could reach 9 gigawatts of power, was approved by a local commission despite fierce community opposition. The executive order outlines eight principles focusing on protecting water resources (including the Great Salt Lake), air quality, wildlife, utility rates, and requiring transparent public comment opportunities. Critics have protested the development over environmental impact, noise, traffic, and quality of life concerns. O'Leary has defended the project, suggesting without evidence that 'professional protesters' and Chinese funding are behind the opposition. The developers agreed to a phased approach requiring new permits for each addition. The issue reflects a growing national political debate over data centers ahead of November's midterms.
All Content from Business InsiderThe small Utah county fighting a massive data center
Box Elder County, Utah, is at the center of a contentious battle over the proposed Stratos Project, a 40,000-acre hyperscale data center backed by Shark Tank celebrity Kevin O'Leary. The project, which would include its own natural gas plant and consume up to 9 gigawatts of power, was presented to the county commission in a packed, heated meeting on May 4, 2026. Residents like Brenna and Tameron Williams say they were given little notice and felt the meeting was a sales pitch. The controversy highlights tensions between rural communities, state agencies, and the rapid expansion of AI infrastructure in America.
WBUR NewsUtah's Fragile Desert Faces Sahara-Like Heat from Massive Data Center Plan
Plans for the Stratos Project, a celebrity-backed hyperscale data center in rural Utah, have triggered intense public and political backlash due to severe environmental concerns. Spearheaded by Kevin O’Leary, the proposed 40,000-acre facility would demand 9 gigawatts of power—more than double Utah’s current electricity consumption—and potentially increase state carbon emissions by 64%. Located near the shrinking Great Salt Lake, the project risks exacerbating water scarcity and creating a massive heat island that could raise local nighttime temperatures by up to 28 degrees Fahrenheit, devastating the fragile desert ecology. Despite approval from Box Elder County commissioners, who cited state agency mandates, over 1,000 residents protested the lack of public consultation. Utah Governor Spencer Cox has subsequently tempered his initial support, acknowledging valid concerns regarding water, air quality, and land use. This controversy highlights a growing national trend of communities resisting tech infrastructure projects that strain local resources. Critics argue the development contradicts state conservation efforts, while O’Leary dismisses claims that the project will drain the lake or destroy air quality.
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