Full Breakdown
Approval of Kevin O’Leary’s Stratos AI Data Center Sparks Protests and Environmental Debate in Box Elder County, Utah
5/7/2026, 11:06:36 PM
Core Event
In May 2026 the three-member Box Elder County Commission unanimously approved the “Stratos” hyperscale AI data center proposed by Kevin O’Leary’s O’Leary Ventures. The project, located near Snowville and Tremonton, will occupy roughly 40,000 acres (about 60 square miles) of privately owned, unincorporated land. Utah’s Military Installation Development Authority (MIDA) granted the final approvals in April 2026 and set a reduced energy-tax rate of 0.5 %—well below the 6 % rate authorized by state law.
Background & Context
Hyperscale data centers have become a focal point for state competition to attract AI-related investment. MIDA’s involvement reflects a broader federal push to expand data-center capacity and power resiliency. The Stratos site is slated to be powered primarily by on-site natural-gas generators, with supplemental solar, wind, and battery storage.
Key Figures & Groups
- Kevin O’Leary – Investor and chairman of O’Leary Ventures.
- Paul Morris – MIDA executive director.
- Lee Perry – Box Elder County commissioner.
- Jerry Stevenson – Utah state senator and MIDA board member; owner of J&J Nursery.
- Kirk Offel – CEO of Overwatch Mission Critical, an industry consultant.
- Local residents, environmental scientists, and activist groups opposing the project.
Data & Statistics
- Planned power demand: up to 9 GW at full build-out, exceeding Utah’s current average consumption of ~4 GW.
- First-phase demand: 3 GW.
- Expected water use: developers intend to purchase 3,000 acre-feet of water rights and have contracts for an additional 10,000 acre-feet.
- Tax incentive: 0.5 % energy tax rate.
- Protest turnout: 400-500 individuals at the commission meeting; hundreds of additional demonstrators reported in earlier rallies.
- Public comment record: 2,500 submissions reviewed by commissioners.
Why It Matters / Impact
The project’s scale raises concerns about water scarcity, greenhouse-gas emissions (estimated 50 % increase in state emissions), and land-use transformation. Proponents cite job creation, national-security benefits, and positioning Utah in the AI race. Critics highlight the disparity between promised economic benefits and the limited long-term employment potential of hyperscale facilities.
Official Statements & Responses
- O’Leary emphasized that sustainability “is at the heart of what we do,” citing air-cooled turbines, renewable-energy integration, and battery efficiency gains.
- MIDA’s Paul Morris described the expedited approval as a response to “competition” among states to secure AI infrastructure.
- Commissioner Lee Perry noted police presence at his home following the vote, reflecting heightened tension.
- Senator Jerry Stevenson declined to comment on the boycott of his J&J Nursery, responding only with “No thanks.”
- Kirk Offel framed the development as “industrial infrastructure for intelligence,” acknowledging environmental trade-offs.
Criticism & Opposition
Environmental experts warned that the natural-gas-driven plant could double Utah’s electricity consumption and strain water supplies. Local activists accused officials of a rushed, opaque process and of offering “lavish tax breaks” with limited community input. Protesters also challenged the claim that most demonstrators were “outside agitators.”
On-the-Ground Reports
The commission meeting was moved to the Tremonton fairgrounds to accommodate the crowd. Demonstrators chanted “Shame! Shame! Shame!” and displayed signs such as “No data center” and “Save our water.” Police were stationed outside commissioners’ residences after the vote.
Conflicting Reports & Gaps
- O’Leary asserts that “over 90 %” of protesters are non-residents, while organizers maintain the majority are local.
- Energy-use estimates vary between “more than twice the state’s current consumption” and the 3 GW first-phase figure.
- Water-rights ownership is described as private in some accounts, yet the county’s authority over allocation remains unclear.
- No independent environmental impact study has been publicly released.
Verbatim Quotes
- “I’m the only developer of data centers on earth that graduated from environmental studies,” — Kevin O’Leary
- “We think over 90% of the protesters are actually not people that live in Utah or Box Elder County. They’re being bussed in,” — Kevin O’Leary
- “Today I have policemen parked in front of my house,” — Lee Perry, Commissioner
- “We are no longer building data centers, we are building industrial infrastructure for intelligence.” — Kirk Offel, CEO, Overwatch Mission Critical
- “I do not want my children to have to move away from Salt Lake City because the Great Salt Lake has dried.” — Emily Box, resident
What’s Next
MIDA plans to begin construction of the first phase within months, pending water-rights acquisitions. The county will monitor emissions and water usage as the project scales. Meanwhile, boycott calls against Senator Stevenson’s J&J Nursery persist, and local advocacy groups have pledged continued oversight of the development’s environmental impact.
