Kevin O'Leary's Stratos Project: 40,000-acre data center faces Utah backlash

Kevin O'Leary's Stratos Project, a sprawling 40,000-acre data center in Utah's Box Elder County, has received county approval but faces intense public backlash. Backed by the Shark Tank investor and real-estate developer West GenCo, the facility will be more than twice the size of Manhattan, consuming 9GW of power—nearly double Utah's peak electricity demand in 2025. Its first phase is projected to cost over $4 billion. O'Leary frames it as a critical step for American AI dominance and national defense, noting it will serve government and tech contractors. The project moved from concept to approval in just months, with Governor Spencer Cox and Senator Stuart Adams reportedly "rolling out the red carpet." However, it still needs environmental and building permits.

Environmental and community concerns are mounting. The data center will draw methane from the Ruby Pipeline and could consume 448 billion cubic feet of gas per year—1.5 times the state's total residential, commercial, and industrial usage. Its on-site power plant aims to keep it off the grid, but the thermal load is alarming: Utah State University physicist Robert Davies projects massive heat generation. Water usage for cooling could strain already taxed supplies, and backup generators may produce noise and air pollution. Residents have voiced strong opposition, with many saying "not in my backyard." The project's long-term impact on local electricity prices, water resources, and the environment remains uncertain, despite assurances from O'Leary and county officials.