Kevin O'Leary says he's 'not walking away' from his Utah AI data center, despite call to shrink it by 75%

Kevin O'Leary, the well-known investor, is standing firm on his plans for a substantial AI data center in Utah, despite a recent push from state lawmakers to significantly downsize the project. On Monday, Utah Senate President J. Stuart Adams expressed his concerns in a letter, urging O'Leary to cut the proposed data center campus from 40,000 acres to just 10,000 acres. Adams, who also leads the Military Installation Development Authority that initially approved the project in April, emphasized the need for stronger commitments regarding water usage, environmental conservation, and public transparency before moving forward. A spokesperson for O'Leary Digital revealed that the team was taken by surprise by this demand, stating, "We have not engaged any Utah legislators on this. The letter caught us off guard." O'Leary is determined to respond to Adams personally within the week. The Stratos Project, envisioned as a cutting-edge AI and defense data center campus in Box Elder County, aims to bolster artificial intelligence, cloud computing, and defense operations. If realized at its current scale, the facility would demand between 7.5 to 9 gigawatts of energy, positioning it as one of the largest data center ventures in the United States. In comments to The Salt Lake Tribune, O'Leary dismissed the proposed reduction as "outrageous," asserting, "This is not the deal I had with Adams. That's not what we agreed to." He likened the drastic cut to selling a house but only allowing access to a bathroom, underscoring his frustration. The Stratos Project has sparked controversy in Utah, raising alarms among residents and environmental advocates regarding its potential impact on water resources, air quality, energy needs, and the rural landscape of Box Elder County. O'Leary has defended the initiative as a means to create jobs and enhance the nation’s competitiveness in AI technology. In a related move, Utah Governor Spencer Cox recently signed an executive order aimed at establishing stricter guidelines for data center developments throughout the state, focusing on environmental considerations such as water resources and air quality. Adams has yet to comment on the ongoing situation.