Utah has approved one of the world's largest datacenters, a colossal project spanning more than twice the area of Manhattan, igniting fierce public backlash over its massive energy consumption and impact on the state's strained water supplies. The Stratos artificial intelligence datacenter will cover over 40,000 acres (62 square miles) across three sites in Box Elder County in northwestern Utah.
Unprecedented Energy and Water Demands
The facility will require approximately 9 gigawatts of power, exceeding the entire state of Utah's current electricity consumption. It will also consume significant amounts of water in a region that has suffered severe drought in recent years. Environmentalists warn that the project could endanger the Great Salt Lake ecosystem, including critical migratory bird habitats already under stress.
“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,” said Franque Bains, director of the Sierra Club's Utah chapter. “Utahns want to see the Great Salt Lake restored, not stripped.”
Project Backer and Controversy
The project is backed by Kevin O'Leary, the venture capitalist known for appearing on Shark Tank and recently playing a villainous tycoon in the movie Marty Supreme. O'Leary claims Stratos will create thousands of jobs and help the US compete with China in the burgeoning AI industry. “I don’t think there’s a bigger site in the world than this,” O'Leary told Fox News. “It shows the Chinese and the rest of the world we are not messing around.”
However, critics argue the jobs will not outweigh the long-term impacts. An impact analysis indicates Stratos could raise Utah's planet-heating pollution by about 50% due to its enormous energy and water consumption for power and cooling. Physics professor Rob Davies from Utah State University warns that waste heat from industrial-scale fans could raise daytime temperatures in the surrounding Hansel Valley by 2°F to 5°F (1.1°C to 2.7°C) and nighttime temperatures by 8°F to 12°F (4.4°C to 6.6°C).
Public Outcry and Referendum Effort
Nearly 4,000 people have lodged objections, leading to contentious public meetings. Box Elder County Commissioner Lee Perry said he felt “physically sick” amid alleged death threats and false accusations. O'Leary has claimed protesters are paid out-of-state actors, but opponents deny this. On Monday, the Box Elder Accountability Referendum group filed an application to reverse the commissioners' approval. If they collect 5,422 signatures from registered voters within 45 days, the project will go to a vote in November.
“Instead of speaking with us, Kevin O'Leary went on social media saying we were out-of-state, paid protesters,” said Brenna Williams, lead sponsor of the referendum push. “The only thing he’s right about is that we don’t want him, an out-of-state billionaire, making decisions for us.”
Water Application Withdrawn and Refiled
Last week, developers withdrew their application to divert 1,900 acre-feet of water from ranching to the project but “fully intends to move forward” with a new application. This new process invalidates previous objections and requires each person to pay $15 to file a new complaint, which opponents see as an attempt to bypass public disapproval.
“I keep trying to give them the benefit of the doubt, but this has all the hallmarks of an out-of-state megaproject with little to no concern for the local community,” said Ben Abbott, an ecologist at Brigham Young University.
State and National Context
The growth of datacenters across the US has been championed by Donald Trump's administration and the AI industry but has sparked local unrest. Anger over rising electricity bills and water depletion has influenced local and state elections. Utah Governor Spencer Cox announced Friday that the Stratos project must not harm the Great Salt Lake or raise power bills. The developers will build the datacenter in phases, starting with 2,000 acres, subject to future reviews.
“Utahns should expect clear standards and accountability,” Cox said. “Industry is our state’s motto. And in our pursuit of economic strength, we must always ensure that development is thoughtful and in line with Utah values.”
