Kevin O'Leary Cuts Utah Data Center Plans in Half

When residents near Utah's Great Salt Lake spoke up about a massive data center threatening their water supply, tech investor Kevin O'Leary listened.

The Shark Tank star agreed to cut his planned Stratos Project data center in half, reducing it from 40,000 acres to 20,000 acres. The facility was set to be built in and around the Locomotive Springs Waterfowl Management Area, raising serious concerns from local activists and lawmakers.

Utah Senate President J. Stuart Adams had pushed O'Leary to go even further, requesting a 75 percent reduction to just 10,000 acres. While O'Leary didn't meet that goal, his letter to Adams on Thursday showed significant compromise.

O'Leary removed 19,430 acres from the main project area and another 620 acres near the highway. He also committed to preserving most of the remaining land as open space, a promise that could protect wildlife habitat in the region.

The change comes at a critical time for Utah's Great Salt Lake, which continues to shrink from drought and overuse. Adams had specifically asked O'Leary to minimize water consumption and redirect excess water to help restore the lake.

The Ripple Effect

This victory shows what's possible when communities organize around environmental concerns. Residents near the data center raised alarms about water usage and pollution, prompting state leaders to take action.

The pushback reflects growing awareness about the hidden costs of our digital world. Data centers powering AI and cloud computing consume enormous amounts of water and energy, often in regions already facing resource challenges.

Other communities watching massive tech projects arrive in their backyards now have a playbook. Local voices, backed by supportive lawmakers, can push for meaningful changes even against powerful corporate interests.

Even at half its original size, the Stratos Project will cover more land than Manhattan and still raises questions about sustainable tech infrastructure. But the fact that O'Leary negotiated at all marks a shift in how these conversations happen.

Utah's experience may inspire other states to set clearer guidelines before approving mega data centers. Some regions are already exploring requirements for water recycling and renewable energy use.

When communities stand together for their resources, even the biggest projects can change course.