Utah's Box Elder County commissioners have approved a sprawling artificial intelligence datacenter project that would consume more electricity than the entire state currently uses and drain massive amounts of water from an already stressed region.
The Stratos facility would sprawl across more than 40,000 acres spanning three sites in northwestern Utah. Its power demand of approximately 9 gigawatts would exceed the state's total current consumption. The project also plans to tap significant water resources in an area hammered by prolonged drought.
The approval, granted last week despite nearly 4,000 formal objections from residents, has triggered fierce backlash from environmentalists and local communities. A physics professor at Utah State University calculated that cooling systems for the facility would generate enough waste heat to raise daytime temperatures in the nearby Hansel Valley by 2 to 5 degrees Fahrenheit and nighttime temperatures by 8 to 12 degrees.
The venture capitalist Kevin O'Leary, known for his role on the TV show Shark Tank, is backing the project. He has argued it will create thousands of jobs and strengthen America's position in artificial intelligence competition with China. O'Leary told Fox News that Stratos represents a statement to the world about U.S. commitment to technological dominance.
Critics contend that job creation cannot offset environmental damage. One impact analysis found the datacenter would increase Utah's planet-warming emissions by about 50 percent. Environmentalists worry it will devastate the Great Salt Lake ecosystem, which is already suffering from water diversion and climate stress. The lake's shrinking water levels pose risks to Salt Lake City residents, who could face toxic dust clouds as exposed lakebed dries.
"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.
O'Leary has dismissed concerns about water depletion on social media, claiming new gas-fired power generation plants will supply the facility's electricity without raising residents' energy costs. He has also characterized protesters as paid, out-of-state agitators bussed in to oppose the project. Local opponents have rejected this claim, with one referendum organizer noting that O'Leary himself is an out-of-state billionaire making decisions about the project.
A local group called the Box Elder Accountability Referendum has launched a petition drive to reverse the county commissioners' approval. If organizers collect 5,422 signatures within 45 days, the project will face a November ballot referendum.
The developers recently withdrew a water diversion application but signaled they intend to file a new one with state regulators. That move, critics argue, forces residents to file new complaints and pay $15 per objection, effectively resetting public opposition processes.
Utah Governor Spencer Cox on Friday announced conditions he will impose on the project, including protections for the Great Salt Lake and power bill guarantees. He said the datacenter will be built in phases, starting with 2,000 acres, before expansion decisions are made. "Utahns should expect clear standards and accountability," Cox said.
The backlash reflects broader national tensions over datacenter expansion. Across the country, communities have grown increasingly skeptical of large technology projects, with several local and state election victories going to candidates opposing unchecked AI infrastructure growth.
Author James Rodriguez: "This looks less like thoughtful infrastructure planning and more like a developer betting he can bulldoze through local democracy with enough money and media spin."
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