Kevin O’Leary Agrees to Downsize Utah Data Center Project Investor Kevin O’Leary’s ambitious plan for a massive AI-focused data center complex in Utah has quickly transformed from a bold expansion pitch into a test of how far tech infrastructure can grow in the face of local environmental and political pushback.

Early plans and rising concerns

O’Leary’s Stratos project was initially pitched as a 40,000‑acre development in Box Elder County, a footprint that would make it one of the largest data center projects in the US, with power needs projected at 7.5 to 9 gigawatts. The proposed site sits in and around the Locomotive Springs area, near the Locomotive Springs Waterfowl Management Area, heightening concern among residents and activists about water use, wildlife, and pollution.

As details emerged, community members warned of rising energy prices, heavy water consumption, and broader environmental damage tied to such a large AI infrastructure buildout. The project’s scale also drew national attention as a symbol of the trade-offs behind the AI boom.

Political pressure intensifies

Utah Senate President J. Stuart Adams became a central figure in the backlash, issuing a demand letter urging O’Leary to cut the project’s size by 75% to about 10,000 acres and to adopt water‑saving technologies while diverting excess water to the shrinking Great Salt Lake. Adams stressed that no approvals or permits had yet been applied for, signaling that the project faced a “lengthy review process” with written commitments and environmental review still ahead.

O’Leary’s concessions and remaining tensions

On Thursday, O’Leary responded in a letter to Adams, agreeing to remove 19,430 acres in and around Locomotive Springs “in recognition of the Locomotive Springs Waterfowl Management Area immediately to the south” and to cut another 620 acres near the highway. He pledged that most of the remaining roughly 20,000‑acre footprint would be preserved as open space.

Adams called the move a “positive step forward,” saying O’Leary had agreed to all conditions in his demand letter, including dedicating new water to the Great Salt Lake. Still, even at half its original size, Stratos would cover an area larger than Manhattan, and experts note that data centers far smaller than this already raise serious questions about energy use, environmental impact, and pollution.

The project now advances under tighter scrutiny, with supporters touting economic and AI infrastructure benefits while opponents weigh whether the downsizing meaningfully reduces long-term environmental risks.

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