Canadian American businessman Kevin O’Leary, known for his role on "Shark Tank," has proposed the development of what could become the world’s largest Artificial Intelligence campus in Box Elder County, Utah. Over the past month, O’Leary has been meticulously planning this ambitious megaproject with a coalition of financiers, private landowners, military strategists, and state officials. The proposed site encompasses a vast 40,000 acres of unincorporated land situated adjacent to the increasingly imperiled Great Salt Lake. The core concept involves a strategic partnership with the military to establish a 30-building "hyperscale" cluster, framed as a matter of national security. O’Leary’s rationale, as articulated by him, is that "the country with the best AI is gonna win the wars," and he aims to preempt any potential advantage by China. If realized, this facility would dwarf Manhattan in size, more than doubling its acreage, and surpass even the 35,000 acres of Bryce Canyon National Park. The vision for Utah includes numerous data centers, research facilities, and potentially integrated worker housing, all designed with striking aesthetics, including sleek glass panels and innovative interior office spaces, which O’Leary Digital CEO Paul Palandjian described as the "sexiest, coolest construction posting in America."

However, these forward-looking plans have encountered significant resistance from a substantial portion of the Box Elder County population. While opposition to data center development is not new in the United States, the sentiment in Box Elder County has been particularly potent, suggesting that even in the staunchly Republican state of Utah, residents may demand considerable political shifts.

"Most people feel betrayed, and that’s bipartisan," stated Stephen Otterstrom, a long-time Salt Lake City resident and candidate for the Statehouse representing District 21. He further elaborated, "I have not encountered a single person who’s said, ‘Wow, this is going to be a great thing for us,’ outside of public officials."

For many Utahns, the sense of betrayal stems not only from the addition of another data center to a state already densely populated with such facilities but also from a perceived lack of democratic deliberation in the approval process. O’Leary’s "Stratos Hyperscale Data Center" proposal was reportedly discussed with Governor Spencer Cox as early as January, with a public announcement following in February. Despite initial discussions and proposals, residents of Box Elder County reportedly did not become aware of the Stratos project until late April, when the county commission convened its inaugural public hearing. The process was characterized by haste; the state’s Military Installation Development Authority, a partner in the Stratos project, sought immediate permit approvals, even as county commissioners expressed concerns about insufficient time to thoroughly assess the proposal. Local residents vociferously advocated for greater public awareness and discourse, prompting the board to temporarily defer a decision on the data center resolution. However, pressure from Governor Cox, who asserted Utah’s "obligation" to facilitate data center development as part of the technological race against China, led the commissioners to revisit the matter. Thousands of negative public comments were submitted, and hundreds of Box Elder residents packed a commission meeting on May 4th. They loudly voiced their opposition, leading the commissioners to adjourn the meeting for a virtual continuation, where they unanimously approved the AI partnership with the Military Installation Development Authority.

"I keep an ear out on things, but like many Utahns, this data center came as a shock – not that it was proposed, but that it was all but approved from every level," commented Larry D. Curtis, a lifelong Salt Lake City resident and former local journalist. He continued, "To me, and to other people I’ve talked to, it felt like it was done in the dark: backroom deals and assurances made with no transparency or government accountability." The intensity of the opposition has garnered national attention, with Hayley Williams, lead singer of the band Paramore, publicly criticizing O’Leary during a concert in Salt Lake City. Grassroots efforts persist, including the formation of the Box Elder Accountability Referendum, which has initiated a process to allow voters to potentially overturn the commission’s approval. Although the county attorney rejected the referendum, its organizers intend to appeal the ruling. Simultaneously, Utahns have inundated Governor Cox’s office with thousands of letters expressing opposition and have frequently gathered at the state Capitol, displaying signs critical of both O’Leary and Cox.

To be fair to the county commissioners, their options were somewhat limited. The land designated for Stratos is privately owned and currently unzoned, with landowners having already granted their consent. One landowner reportedly told The Salt Lake Tribune that the project "is going to bring a lot of good-paying jobs" and expressed support if it is deemed necessary for the nation to "stay ahead of China."

Box Elder County Commissioner Lee Perry acknowledged the limited recourse, stating to local public radio station KUER, "They can buy this property, build this data center, and I can do nothing to stop it." Consequently, after "looking at all the options that I had available," Perry sought to mitigate potential negative impacts by negotiating for increased tax revenue and securing state and corporate coverage of construction costs, aiming to lessen the financial burden on Box Elder residents. These residents are understandably concerned about the well-documented downsides associated with data centers, including elevated utility costs, exacerbated water shortages, and increased noise and air pollution. The growing concerns are evident in Iron County, located in southern Utah, which recently implemented a six-month moratorium on new data center approvals. Curtis predicts that these commissioners may face electoral repercussions, suggesting, "they probably won’t run again – I think people fully expect those county commissioners will never be elected again."

Despite these potential drawbacks, the proponents of Stratos, also referred to as "Wonder Valley," present a compelling narrative of economic benefits. The campus is planned for phased development, with each phase projected by the state to generate tens of millions of dollars in tax revenue and create thousands of jobs, primarily in construction, maintenance, and IT, although many are expected to be temporary. The project’s energy demands are slated to be met by an existing natural gas pipeline and a new on-site solar farm. Furthermore, Stratos backers claim that a portion of the water used for cooling the servers will be part of a "closed-loop" system that recycles used water back into the Great Salt Lake. Governor Cox has echoed this assertion, controversially stating at a press conference declaring a state of emergency over Utah’s drought conditions that the new data center "is going to use less water" than other significant water consumers such as agriculture and residential lawn care.

However, many Utahns remain skeptical. Otterstrom argues that "Just 2,000 permanent jobs isn’t much when you’re considering the size of that facility." He also highlights the pressing issue of the Great Salt Lake’s decline, stating, "Also, we’re in a situation where the Great Salt Lake is drying out, and we haven’t even begun to stop the decline."

Curtis concurs, pointing to the recent unusually dry winter as an indicator of the climate emergency. "There’s never been a winter like this, where we had virtually no precipitation, very little snow, very little rain," he observed. "We count on that snowpack from the mountains." He emphasizes the widespread awareness among Utahns regarding the shrinking Great Salt Lake and its profound impact on the state’s economy, climate, and even its ability to generate snow for ski resorts. Beyond these factors, the lake is crucial for fishing, boating, mineral extraction, and plays a vital role in preventing toxic dust from the exposed lakebed from blanketing the most populated areas of Utah, potentially driving residents away.

"Our economic growth is in the Salt Lake Basin. If you look for high-paying jobs elsewhere within the state, there are not a lot of opportunities," Otterstrom noted. "In the past, one thing I could’ve agreed with Gov. Cox on was that we need to save the lake. Now this puts into question whether there is any sincerity in that."

Despite O’Leary’s concerted efforts to discredit protesters by labeling them "proxies" for the Chinese government and dismissing their concerns as mere "poo-poo," many Utah politicians are adopting a more cautious stance. State Senator Scott Sandall, who represents Box Elder County, has shifted from unconditional support for Stratos to endorsing a new legislative study on the potential harms of data centers, including wildlife impacts. Utah House Speaker Mike Schultz, initially identified by O’Leary as an early supporter, appears to have distanced himself from the project following reports that he owns land near the proposed site. Schultz has denied being prematurely briefed by O’Leary, called for a comprehensive environmental review, and expressed support for the now-halted Box Elder Accountability Referendum.

Those who remain steadfast in their support for the project are facing significant public backlash. J&J Nursery, owned by a state senator who facilitated the Stratos approval, is experiencing widespread calls for boycotts. Jason Chaffetz, a former Republican representative now seeking the governorship, is facing criticism for his admitted involvement with the consulting firm that brought the Wonder Valley project to Box Elder County. Senate President Stuart Adams, who chairs the Military Installation Development Authority, is now facing multiple primary opponents, a situation Curtis believes could make him politically vulnerable, especially given a previous scandal involving a law change that benefited his granddaughter who pleaded guilty to sexual battery.

Notably, Governor Spencer Cox has partially retracted his earlier dismissive remarks, acknowledging that "people are right to push back." He has committed to a thorough environmental-impact review and issued an executive order establishing a "higher bar for data center development in Utah," mandating consideration of utility rates and environmental impacts. However, some believe these measures may be insufficient. Curtis observes that Cox, who was once perceived as a moderate, has aligned himself with legislative directives, leading to public frustration with politicians perceived as lacking firm principles. He notes that the sentiment of "Vote them all out" is prevalent among both Democrats and Republicans regarding the data center issue, a level of universal community response he has rarely witnessed in his lifetime.

This public outcry continues to manifest in various forms. Developers’ recent applications for water rights linked to Stratos have been met with formal objections from ordinary Utahns, leading to the withdrawal of two such applications. Protests persist at the Utah Capitol, and some groups are pursuing legal action against the Military Installation Development Authority. This sustained popular resistance mirrors similar developments in other states like Virginia, Missouri, and Michigan, where data center projects have also ignited significant opposition. For Utahns, the battle is particularly existential, as they argue that an AI competition with China should not supersede the preservation of their natural wonders, quality of life, and the long-term viability of the Salt Lake Basin.

"We have public programs, such as our education system, that go woefully underfunded year after year, and it’s not because there’s a lack of resources. It’s because there’s a lack of allocation," Otterstrom stated. "More often than not, those who have inexhaustible means, like the billionaires, they get what they want." The current data center controversy may represent a tipping point for Utahns who feel increasingly frustrated and concerned.

Unintentionally, Kevin O’Leary may have catalyzed a new wave of political activism in Utah, potentially jeopardizing the very lawmakers he partnered with for his latest venture.