Utah tightens rules for Kevin O’Leary’s AI data center after backlash

AI For Business


Utah’s governor is in favor of new AI data centers under certain conditions.

After a massive data center project backed by “Shark Tank” investor Kevin O’Leary outraged many Utahns, the governor announced new standards for its development.

In an executive order Friday, Gov. Spencer Cox set “a higher standard for data center development in Utah.”

“Utahans deserve confidence that their water resources, air quality, utilities, wildlife, and quality of life will be protected. This framework will help ensure data center development is consistent with Utah’s long-term interests and reflects Utah’s values,” Cox wrote in the X post.

The framework includes eight principles that address a variety of issues, including protecting water resources such as the Great Salt Lake and reducing impacts on wildlife. Protecting utility payers, committing to “human-driven AI development” and providing “transparent, meaningful and thorough public comment opportunities” were also among the principles outlined.

The executive order directing agencies to adopt this framework is effective immediately.

Tensions have been running high in Utah for months, particularly in Box Elder County, where commissioners approved plans for the Stratos Project, a massive 40,000-acre data center campus, despite opposition from local residents. The development, also called “Wonder Valley” after Mr. O’Leary, who calls himself “Mr. Wonderful,” could eventually reach 9 gigawatts of power.

Many residents vehemently opposed the development, with local council meetings crowded and petitions being circulated. Some critics recently protested a data center outside the Utah State Capitol.

While proponents argue that data centers will create jobs and spur economic growth, opponents are concerned about environmental impacts, noise levels, air quality, traffic and overall quality of life for nearby residents.

Mr O’Leary has defended the development many times. Earlier this month, he suggested without evidence that “professional protesters” were orchestrating much of the controversy, that AI was amplifying some opinions and that Chinese funding was fueling anger.

According to the Stratos Project webpage, residents have submitted more than 2,000 questions and concerns with “a mix of supportive and critical feedback.”

Cox said in a May 1 post that the developers of the Stratos project have agreed to a phased approach to development, meaning a new permit will need to be applied for each planned addition.

Data centers are becoming a major political issue ahead of the midterm elections in November. Communities across the country are protesting and putting pressure on local politicians. For example, in February, New Jersey residents successfully blocked data center development.