Kevin O’Leary’s $100 Billion Utah Data Center Project Faces Fierce Local Opposition

A proposed 9-gigawatt data center in Box Elder County, Utah, has ignited a significant local backlash, with residents expressing deep concerns over its scale and potential environmental impact. The project, valued at $100 billion and backed by investor Kevin O’Leary of Shark Tank fame, envisions a facility spanning some 40,000 acres, an area roughly equivalent to Washington, D.C. This massive undertaking, known as the “Stratos Project” or “Wonder Valley,” has drawn the ire of a community worried about its resource demands and the process by which it gained initial approval.

Last week, county commissioners in Box Elder, a rural area with fewer than 60,000 residents, voted unanimously to advance the project. This decision unfolded during a contentious meeting where protesters gathered at the county fairgrounds, demanding more information and voicing their opposition. Reports indicate the meeting became unruly, culminating in commissioners retreating to a private room to finalize the approval, leaving attendees to watch the proceedings via livestream. The swiftness and manner of the decision have only exacerbated public sentiment.

Following the vote, a group of residents moved quickly to file an application for a referendum, aiming to halt the project through a public vote. The Box Elder County attorney is currently reviewing the viability of this application. Should it be deemed valid, the effort would then require more than 5,000 signatures from county residents to secure a spot on the ballot. County officials have stated that a successful referendum would void the consent and agreement approved by the commissioners, potentially leaving the project to proceed without negotiated concessions and protections.

O’Leary, a Canadian businessman and television personality, has publicly defended the project, framing it as crucial for national security and America’s competitive edge in the artificial intelligence sector against China. He has suggested that opposition might be fueled by Chinese misinformation, a claim he reiterated in a Fox News interview, questioning who would benefit from halting the development of the U.S. electrical grid and computing capacity. In a social media post, O’Leary further alleged, without presenting evidence, that over 90% of the protesters were paid and transported from outside the state, an assertion disputed by local reporting from the *Salt Lake Tribune*.

The environmental implications are a primary concern for many residents. The Utah data center is projected to require more electricity than the entire state currently consumes in a year. While O’Leary has indicated the project will generate its own power using natural gas, alleviating strain on the existing grid, locals are apprehensive about increased emissions and heat. Furthermore, the substantial water necessary for cooling such a facility raises alarms, particularly given the ongoing shrinkage of the Great Salt Lake, whose water level has dropped 22 feet since 1986, partly due to human activities. This concern is amplified by examples like a 615-acre data center in Fayetteville, Georgia, which reportedly drained millions of gallons of water without initial payment, contributing to local water pressure issues.

This situation in Utah is not an isolated incident but rather part of a growing national trend of communities pushing back against large-scale data center developments. In Festus, Missouri, voters recently unseated every incumbent council member after the approval of a $6 billion data center. Maine lawmakers attempted to impose an 18-month ban on such developments, though Governor Janet Mills ultimately vetoed the measure. Even when local opposition leads to official rejections, as seen in Saline Township, Michigan, where both the planning commission and township board voted against a data center tied to OpenAI and Oracle’s Stargate initiative, projects can still advance. In that instance, construction commenced after the township settled a lawsuit brought by the developer, Related Digital, and the landowners. The unfolding drama in Box Elder County reflects a broader societal debate over technological expansion and its localized consequences.

Ruth Forbes

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