Full Breakdown
Kevin O'Leary Attributes Utah Data Center Opposition to Chinese Propaganda
5/31/2026, 4:30:18 AM
The Stratos Project and the Chinese Influence Claim
Shark Tank investor Kevin O’Leary is promoting a 40,000-acre hyperscale AI data center—dubbed the Stratos Project—near Box Elder, Utah. In interviews beginning May 10, O’Leary asserted that “nefarious accounts out of the country” tied to China are spreading misinformation to block the facility, describing the effort as a coordinated foreign-directed propaganda campaign. He cited “90 pages of evidence” indicating “millions, hundreds of millions of dollars” funneled through overseas entities to finance protest activity, and claimed that roughly 90 % of demonstrators were bussed in from outside the region.
Government Responses
Interior Secretary Doug Burgum echoed O’Leary’s framing, stating that “[opposition is] not organic and local. Some of this is foreign source dark money coming in,” and later adding that “any place that’s trying to build data centers is getting bombarded with foreign-directed propaganda.” Utah Governor Spencer Cox responded with an executive order (May 29) directing state agencies to tighten review of large data-center projects, signaling heightened regulatory scrutiny without endorsing the foreign-influence narrative.
Local Impacts and Community Concerns
Residents of Box Elder have raised concrete objections: the projected 9 GW power demand could strain the regional grid; water-intensive cooling systems may deplete local aquifers; noise and land-use changes threaten agricultural and pastoral activities; and the promised economic benefits—up to 6,000 jobs and staged development over ten years on roughly 9,000 acres—are viewed skeptically given past experiences with large infrastructure projects.
Opposition Voices and Counterclaims
Local and national groups have rejected the Chinese-propaganda allegation. Code Pink labeled the claim “false and defamatory,” while a spokesperson for Alliance for a Better Utah called it “laughable.” Activist Kyle Schmidt described the narrative as “gaslighting 101.” The Wyss Foundation, an environmental nonprofit, denied any involvement in a foreign-influence campaign and called the reports “misleading.”
Project Scale and Public Sentiment
The Stratos proposal envisions a 40,000-acre campus with a peak power requirement of up to 9 GW. O’Leary’s plan calls for phased construction, ultimately using about 9,000 acres and creating up to 6,000 jobs. A 2026 Gallup poll found roughly 70 % of Americans oppose new data-center developments, reflecting broader unease about AI-driven infrastructure.
Conflicting Evidence and Unresolved Questions
No publicly verifiable documentation has been presented to substantiate the alleged foreign funding. The Wyss Foundation and Alliance for a Better Utah denied participation in any influence operation. Think-tank analyses are mixed: Ryan Fedasiuk of the American Enterprise Institute acknowledged “the inference issue is real” but cautioned that “China isn’t the reason AI buildouts are unpopular in the United States.” The Bitcoin Policy Institute reported a “foreign influence campaign against American AI” while also noting “Americans do have serious concerns that need to be heard.” These divergent assessments highlight a gap between allegation and proof.
Broader Implications for AI Infrastructure
The dispute illustrates the tension between national-security arguments for rapid AI compute expansion and local communities bearing the environmental and fiscal costs. Framing opposition as foreign meddling may accelerate policy discussions but also risks eroding public trust, a factor identified as a potential bottleneck for future AI infrastructure projects.
Verbatim Quotes
- “nefarious accounts out of the country” tied to China were spreading misinformation about his project as part of a coordinated attack on American AI infrastructure. — Kevin O’Leary
- “This is like gaslighting 101,” — Kyle Schmidt, activist
- “false and defamatory” — Code Pink (anti-war group)
- “laughable.” — Alliance for a Better Utah spokesperson
- “that China isn't the reason AI buildouts are unpopular in the United States.” — Ryan Fedasiuk, American Enterprise Institute
What’s Next
Governor Cox’s executive order initiates a state-level review of the Stratos project’s environmental and grid impacts, with hearings slated for the summer. O’Leary’s team plans to proceed with phased construction pending approvals, while local advocacy groups have organized additional town-hall meetings to assess community concerns. The outcome will shape how future AI-related data-center proposals navigate the intersection of national strategy and local accountability.
