Residents in Utah are protesting against a proposed $100 billion data center project backed by businessman and Shark Tank investor Kevin O'Leary, saying the facility could put pressure on local electricity and water resources. The project, called the “Stratos Project” or “Wonder Valley,” is planned for Box Elder County in northwestern Utah and is expected to use more electricity than the entire state currently consumes in a year.
According to a Fortune report, county commissioners recently voted unanimously to move the 9-gigawatt project forward despite strong opposition from local residents gathered at a public meeting. However, protesters have raised concerns about the project’s large footprint, environmental impact and possible strain on nearby resources.
What are residents’ concerns against the Utah data center?
Residents have also raised concerns about the amount of electricity and water the data center may require. Reports said the facility could use more than double the electricity Utah currently consumes annually. O’Leary has said the project plans to generate its own power using natural gas.
Some residents worry the cooling systems and emissions from the campus could worsen local environmental conditions and further affect the shrinking Great Salt Lake. NASA data cited in reports said the lake’s water level has dropped 22 feet since 1986.
Kevin O’Leary defends the project
The Canadian billionaire has defended the project, saying it could create thousands of jobs and help strengthen the United States in the global AI race against China. In an interview, O’Leary said that opposition to the project may be linked to misinformation campaigns.
“At the end of the day, who would want us to stop building our electrical grid? Who would want to stop us from having compute capacity to develop AI? Which adversary would want that? There’s only one: it’s China,” O’Leary said in an interview to Fox News recently.
He also claimed in a social media post that many protesters were paid and brought in from outside Utah, though local reporting disputed the claim.
Residents seek referendum to stop the project
Following the vote, a group of residents filed an application seeking a referendum that could put the project before voters. According to reports, the county attorney is reviewing whether the application is legally valid. If approved, supporters of the referendum would need to collect more than 5,000 signatures from county residents.
Box Elder County said the referendum, if successful, could cancel agreements approved by county commissioners, though it may not completely stop the project itself.
