Kevin O'Leary, chair of O'Leary Digital and Shark Tank investor, has cut the Stratos data center project in Box Elder County, Utah in half before construction begins, reducing the planned development from 40,000 acres to approximately 20,000 acres. The decision followed intense local opposition centered on concerns that the project would drain 1,900 acre-feet of water from local sources, threatening the vulnerable Great Salt Lake. Residents paid $15 fees to register formal comments blocking the water transfer, while Utah Senate President Stuart Adams sent a letter requesting O'Leary reduce the project scope by 75 percent.
O'Leary Reduces Stratos Project from 40,000 to 20,000 Acres
O'Leary confirmed the project reduction at an AI gala in Washington, DC, stating he had "no choice" but to agree to Senate President Adams' demands. The original plan covered 40,000 acres across multiple Utah sites, designed to be nearly three times the size of Manhattan. Under the revised plan, approximately 20,000 acres remain, with 10,000 acres staying undeveloped and roughly 25 percent of the initial acreage designated for data center development.
Box Elder County Residents Block 1,900 Acre-Feet Water Transfer
Local residents' primary concern focused on water drainage, particularly the transfer of 1,900 acre-feet of water from a ranch to the hyperscale data center. Many residents paid a $15 fee to register comments opposing the water transfer. Additional concerns included potential electricity bill increases and risks to air quality, local wildlife, and land. The Great Salt Lake's vulnerable status heightened community alarm over water resource allocation.
O'Leary Acknowledges Transparency Failures in Project Planning
O'Leary told a local ABC affiliate that he regrets not working with state officials to maintain transparency about the project from the beginning. "We really screwed it up," O'Leary said, adding that he "was not expecting this kind of intense blowback from the public." He stated that he and state officials assumed "people would be excited" about the major local investment and "made huge mistakes" by not involving the public more in discussions. "We pissed off a lot of people, and that's not the way I do business," O'Leary said.
FAQ
What is the Stratos data center project in Utah?
The Stratos data center project is a hyperscale data center development in Box Elder County, Utah, originally planned for 40,000 acres across multiple sites. Developer Kevin O'Leary reduced the project to approximately 20,000 acres following local opposition, with roughly 25 percent of the initial acreage designated for data center construction and 10,000 acres remaining undeveloped.
Why did Box Elder County residents oppose the data center project?
Residents opposed the project primarily due to concerns about water drainage, specifically the transfer of 1,900 acre-feet of water from a ranch to the data center, which threatened the vulnerable Great Salt Lake. Many residents paid $15 fees to register formal comments blocking the water transfer. Additional concerns included potential increases in electricity bills and risks to air quality, local wildlife, and land.
