Kevin O'Leary, the venture capitalist known for his role on Shark Tank, has pledged to reduce the size of a proposed data centre in Utah by half following intense pressure from lawmakers and community members. The planned Stratos development, initially covering 40,000 acres, will be scaled back significantly, with most of the remaining area preserved as open space.
Project scaling and commitments
In a letter to Utah Senate President J. Stuart Adams, O'Leary confirmed the reduction, stating that the revised plan aligns with calls for a 75 percent decrease in the overall footprint of the project. Despite the cuts, O'Leary maintained that many environmental concerns were exaggerated. He emphasized that the project has not yet broken ground, received permits, or finalized its engineering and development plans.
“Much of the alarm surrounding this project has been based on incorrect assumptions and facts about land use, water use, heat dispersion, air quality, and project timeline that does not reflect reality,” O'Leary wrote. He added that the development is still in the early stages of refinement.
Community opposition and environmental worries
The nine-gigawatt Stratos project, located in the northwest corner of Utah, has sparked widespread protests, including death threats against elected officials. Concerns center on water usage near the Great Salt Lake, as well as broader environmental impacts such as land consumption, heat dispersion, and air quality. The backlash reflects a growing trend of community opposition to the rapid expansion of data centres needed to power artificial intelligence technologies.
O'Leary Digital, the company behind the project, did not immediately respond to requests for comment. It remains unclear whether the overall nine-gigawatt capacity of the facility will change as a result of the footprint reduction.
Broader context: AI data centre boom faces resistance
This dispute is the latest example of how the surge in data centres to support AI is triggering opposition from local communities. Complaints range from soaring power prices to job displacement fears and environmental degradation. Last month, a small Texas county near Dallas approved a one-year moratorium on new data centre and energy storage developments, signaling a growing regulatory pushback.
Response from Utah officials
Senate President Adams welcomed O'Leary's decision to reduce the project's size but reiterated that the development must comply with Utah regulations and protect nearby water resources. “With responsible water use, transparency and input from the people of Utah, we will show the nation how to build it right,” Adams said in a statement. He stressed that the proposal must undergo a full permitting and environmental review process, just like any other development in the state.
The scaled-down plan represents a significant concession by O'Leary, who had previously defended the project against what he called incorrect assumptions. The outcome highlights the increasing challenges faced by tech and energy companies as they seek to expand infrastructure for AI in the face of environmental and community concerns.
