Full Breakdown
Kevin O’Leary Scales Back Utah AI Data Center After Political Pushback
6/5/2026, 3:30:55 AM
Core Development Cut
Investor Kevin O’Leary announced Thursday that he will halve the Stratos project, cutting 19,430 acres from the 40,000-acre site and pledging to protect the Locomotive Springs area. A revised proposal is due week’s end.
Background and Key Players
The Stratos plan, approved for a 10,000-acre AI data center on a 40,000-acre site in Box Elder County, was promoted as a major AI facility, expected to draw 7.5–9 GW of power—more than Utah’s current electricity use—and to require water. The debate pits investor Kevin O’Leary (O’Leary Digital) against Utah Senate President J. Stuart Adams, who demanded a 75 % cut, as well as Alliance for a Better Utah, Sierra Club Utah’s Franque Bains, and Governor Spencer Cox.
Timeline of Key Moves
Adams sent demand letter in June; O’Leary replied June 19, saying he “has no choice,” and June 20 announced a 50 % cut. Adams faces a June 23 GOP primary.
Project Scale and Jobs
The revised site will be about 20,000 acres with 9 GW power demand; O’Leary projects 4,500 construction and 2,500 permanent jobs, and says water will be diverted to the Great Salt Lake, though none flows there.
Official Responses & Criticism
O’Leary’s letter pledges land reduction and a memorandum with Utah’s Department of Natural Resources. Adams called concession “a positive step forward” but said permits and environmental reviews remain pending. Governor Cox called critics “rushed” and “the dumbest thing ever.” Sierra Club Utah director Franque Bains warned project would be “irresponsible and dangerous” for Great Salt Lake. Alliance for a Better Utah denied Chinese funding, saying O’Leary is foreign interest.
Conflicting Claims
O’Leary says the project will divert water to the Great Salt Lake; Adams notes no water currently flows from the site. O’Leary also alleged Chinese-linked dark-money funding of opposition groups; Alliance for a Better Utah refuted the claim without independent evidence. No permits have been filed.
Verbatim Quotes
- “I have no choice,” — Kevin O’Leary, investor, Washington AI Network AI Honors gala
- “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,” — Kevin O’Leary, letter to Senate President
- “At a time when the Great Salt Lake is already in crisis, approving a project that will consume water and energy at this scale is irresponsible and dangerous,” — Franque Bains, Sierra Club Utah director
- “After seeing coordinated false attacks against the Utah data center project, we brought in an advanced data science team to trace where the content was coming from and the results were shocking.” — Kevin O’Leary, X post
What’s Next
O’Leary will file the revised proposal this week; state regulators will then conduct environmental reviews, issue permits, and hold public hearings. Adams’ June 23 primary could shape further negotiations.
