Kevin O’Leary aims to cover 40,000 acres, but residents strongly oppose it, saying, ‘Not in my backyard.’
Utah is poised to host one of the largest data centers globally, despite warnings from experts and significant public opposition. Box Elder County commissioners recently approved the Stratos Project, a 40,000-acre data center planned for Hansel Valley. It’s intended to boost American AI superiority but poses risks of environmental harm and strain on water resources.
Backed by Kevin O’Leary, the Stratos Project is projected to be over twice the size of Manhattan, consuming 9GW of power—nearly double the state’s peak electricity demand in 2025. The first phase alone is expected to exceed $4 billion, as noted by Utah Money Watch. O’Leary envisions it as a means for the US to assert AI dominance and enhance national security by serving government and tech firms.
The county and Gov. Spencer Cox have given approval, but environmental and building permits are still needed. Meeting with Cox in January, O’Leary described a swift path from concept to approval, with the state accelerating policy for permits.
O’Leary’s firm announced the center’s development with West GenCo. The 62-square-mile site predominantly lies on private land but intersects with Department of Defense properties. MIDA stands to earn $49 million annually in property taxes, aiding Utah’s Hill Air Force Base and state infrastructure.
Data centers spark debate nationwide, drawing heavy power, raising electricity prices, straining water resources, and raising noise pollution concerns, despite promised job opportunities.
Utah’s campus plans an on-site power plant to remain off the state grid, using methane from the Ruby Pipeline. This project could use 448 billion cubic feet of gas annually. The project’s effect on gas availability and pricing remains uncertain.
Concerns arise over the thermal load projected from the data center, akin to 23 atomic bombs of energy daily, potentially raising local temperatures significantly and impacting the environment.
Stratos is expected to emit 30.2 million tons of CO2 annually, increasing state emissions by 55%. Box Elder County assures a water recycling system that won’t divert from homes or the Great Salt Lake, but where the water will come from is questioned.
Initially, water was planned from Salt Wells Spring. After public backlash, applications were withdrawn. A new water application proposes using a spring in Hansel Valley. A new law restricts rejecting applications based on adverse public impact or better water use.
Officials dismissed public outrage. Commissioner Boyd Bingham criticized protestors, and Gov. Cox expressed frustration with slow processes, while O’Leary accused dissenters of being funded by China.
Opposition persists, with a group seeking a referendum to potentially overturn the county’s approval, testing multibillion-dollar projects against local opposition efforts.