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Full Breakdown

Utah’s Stratos AI Data Center Scaled Back

6/7/2026, 10:50:55 PM

Project Overview and Revised Scope

The Stratos Project, an AI data center in Box Elder County, was announced in April 2026 as a 40,000-acre site—about 2.7 times Manhattan—planned to generate 7.5-9 GW. Developers estimated water use between 2 billion and 16.6 billion gallons per year. In June 2026, investor Kevin O’Leary agreed to cut more than 20,000 acres, leaving roughly 20,000 acres, and pledged water diversion to the Great Salt Lake.

Timeline of Key Events

April 2026: project announced; May: protests raise water concerns; June 1: Senate President Stuart Adams demands 75 % cut; June 4: O’Leary confirms >20,000-acre reduction; June onward: lawsuit filed and permitting begins.

Core Data

Land: 40,000 acres originally, now ? 20,000 acres. Power: 7.5-9 GW (9,000 MW). Water: 210 gal/MWh model gives 2–16.6 billion gal/yr; Utah’s total use is 847 billion gal/yr (2023).

Official Statements & Responses

The Stratos team said designs are “still under design” and a water-use study will follow engineering. Spencer Cox’s office cited a closed-loop cooling system that would keep demand “similar to a large office complex.” Senate President Adams called the scaling-back a “positive step,” stressing responsible water use and transparency. Utah Clean Energy warned that without detailed plans the water estimates remain speculative. MIDA said the project is in its “earliest stages” and will undergo review.

Criticism & Opposition

Plaintiffs say the plan would give “permanent, irrevocable control over public health, safety, taxation and land use” without voter input. Climate scientist Logan Mitchell and ecologist Ben Abbott doubt a 9-GW Allam-cycle plant’s feasibility and warn of “enormous air pollution.” A poll found 53 % of Utah voters opposed the original proposal, citing drought and air-quality concerns.

Conflicting Reports & Gaps

Water-use estimates range from 2 billion to 16.6 billion gallons per year. Developers claim a “waterless” power solution, yet the world’s largest Allam-cycle plant is 400 times smaller than the proposed capacity. No detailed designs have been released, leaving the impact uncertain.

Why It Matters

The dispute highlights the clash between rapid AI-infrastructure expansion and water-resource stewardship in a drought-prone state, while raising questions about MIDA’s governance role and public participation in large-scale projects.

Verbatim Quotes

  • “still under design” — Stratos development team
  • “Under the Stratos plan, it would hold permanent, irrevocable control over public health, safety, taxation and land use across tens of thousands of acres of Box Elder county, with no voter recourse,” — David Irvine, plaintiffs’ attorney
  • “claims that we’ll drain the Great Salt Lake, consume Utah’s power, or create massive environmental damage simply don’t reflect the reality of what we’re building” — Kevin O’Leary
  • “Datacenters are the foundational computing structure that makes modern life possible.” — Brett Guthrie, House Energy and Commerce Committee chair

What’s Next

State agencies will issue an environmental impact study, and MIDA must secure written commitments before permits are granted. The lawsuit proceeds, and O’Leary’s revised plan will be reviewed for water-use and land-conservation compliance. Further adjustments remain possible pending regulatory feedback.