Utah Gov. Spencer J. Cox said he’s heard the complaints from residents about a data center development backed by “Shark Tank” investor Kevin O’Leary, so he’s making some new demands.
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Cox said he’s faced questions this week about the data center’s impact on a range of issues — including energy and air quality — which he called “real concerns.”
“All Utahns should expect clear standards and accountability,” Cox said in a lengthy X post on Friday.
He said that based on conversations with residents, local leaders, and others, he would undertake a series of “actions” regarding the project. He then addressed various concerns, such as the project’s size and its impact on air, water, and the electric grid.
He said he’d require the project to obtain new approvals for each phase, with the first “not to exceed” 1.5 gigawatts. That means the developers would need all new approvals to proceed with their expansion plans.
He also directed the state’s environmental agency to review all permits related to air quality and its Department of Natural Resources to ensure that the state’s water is protected and the project uses the most “environmentally sensitive” cooling systems.
Cox’s effort to assuage residents came after Box Elder County commissioners approved the data center, which will sit on a 40,000-acre campus and is known as the Stratos Project.
Residents staged protests and fought with local politicians over the data center, which they worry could raise utility costs, increase noise levels, strain the water supply, and degrade their overall quality of life. Although data centers are adopting more sustainable methods, they can still use millions of gallons of water a day.
Data centers have become a divisive topic in America amid the AI boom. Tech companies are desperate for new data centers to power their ever-advancing systems. Many Americans, however, aren’t keen on those developments coming to their backyards.
O’Leary responded to the pushback earlier this week, saying — without providing evidence — that opposition to the data center may have come from “professional protesters” and suggesting AI-generated posts were “ironically” driving the conversation. On Friday, O’Leary said members of the public may have misconceptions about what data centers are and how they function.
“At some point, understanding the value of sustainability, water and air rights, indigenous rights, and making sure the constituencies understand what you’re doing is going to be more valuable than the equity you raise,” he said on X.
