A major data center project in Utah, initially planned to span 40,000 acres, has been cut in half due to strong local opposition. The Stratos data center, backed by venture capitalist Kevin O’Leary, faced significant resistance from residents in Box Elder County who feared the project would harm local water resources, especially the Great Salt Lake. Many locals paid a $15 fee to register their concerns, including the potential transfer of 1,900 acre-feet of water from a ranch to the project. Other worries included rising electricity bills, air quality, wildlife, and land use. O’Leary admitted he underestimated the public backlash and regretted not engaging more with residents early on. He told a local ABC affiliate that the project’s initial design was based on an assumption that people would be excited about the investment, which proved incorrect. 'We really screwed it up,' he said, acknowledging that the backlash was more intense than expected. 'That’s not the way I do business.'
O’Leary’s group has reduced the project’s footprint to about 20,000 acres, with 10,000 acres left undeveloped. The Utah Senate President, Stuart Adams, pressured O’Leary to cut the project by 75 percent, which the developer agreed to at an AI gala in Washington, DC. Adams called the compromise a potential model for responsible data center development in the US, emphasizing the need for transparency and public input. However, some residents remain skeptical, arguing that the damage to the area’s water resources is irreversible. 'Even if the data center isn’t as dreadful as feared—or if it never is actually built—the stench attached to the rushed and secret political process will take a very long time to dissipate,' warned the Salt Lake Tribune editorial board.
O’Leary claims the changes are a response to public demands for transparency and wants to rebuild trust by taking direct control of communications. He told the ABC affiliate that he is personally overseeing all project updates to ensure residents are better informed. 'All the plans are going to be transparent,' he said, while asserting that public concerns are exaggerated. Despite the reductions, the project still faces significant hurdles, including securing additional approvals and completing environmental reviews. Critics, like Brenna Williams, argue that the project’s scale is unsuitable for the area and that the changes are insufficient to address local concerns. 'I think this was the plan all along,' Williams said, suggesting that the project would not have been approved without public opposition. 'Box Elder County is just too vulnerable for a hyper-scale data center of this size.'
Source: arstechnica
