Kevin O’Leary’s Utah Data Center Project Faces Scrutiny A massive AI data center planned for rural Box Elder County, Utah, has become a test case for how far local communities and state leaders will go to scrutinize big-tech infrastructure tied to the AI boom.

Early approvals and rising local anger

County commissioners initially approved the Stratos Project, a data center campus slated to span 40,000 acres in northwest Utah, despite vocal opposition from nearby residents. Locals warned the development could raise utility bills, increase noise, strain limited water supplies, and damage their quality of life, turning data centers into a flashpoint of broader unease about AI-era infrastructure.

As protests mounted and complaints poured in, a related water diversion application was rescinded amid public pressure, signaling that community concerns over water and environmental impact were already influencing the project’s trajectory.

Kevin O’Leary’s defense of the project

Venture capitalist and “Shark Tank” investor Kevin O’Leary, a key backer of the Stratos Project, pushed back on the criticism, arguing that “people have misconceptions about what data centers are” and their environmental footprint. He urged opponents to “think about the number of jobs” the campus would bring, framing the facility as a major employment engine for the region.

O’Leary, who holds a degree in environmental studies, said he “totally” understands worries about water, air, and wildlife but contends modern data centers are more efficient and less damaging than residents fear.

Governor Cox tightens the rules

Facing escalating pushback, Utah Governor Spencer Cox intervened, saying he had heard “real concerns” from residents about energy use, air quality, and water resources tied to the project. Cox announced new demands: the data center must secure fresh approvals for each phase, with the first capped at 1.5 gigawatts, and state agencies must re‑examine air-quality permits and ensure water is protected using the most “environmentally sensitive” cooling systems.

The governor framed the move as an effort to guarantee “clear standards and accountability” as Utah navigates the economic promise and environmental risks of the AI data-center boom.

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