Utah Tightens AI Data Center Rules As Kevin O'Leary Battles Opposition To Massive Stratos Project
Kevin O'Leary-backed AI data center plans in Utah are now facing tighter state oversight after Gov. Spencer Cox moved to impose stricter development rules amid rising community opposition over environmental and resource concerns.
Utah Imposes Stricter Rules
In an executive order issued Friday, Cox established a "higher bar for data center development in Utah," directing state agencies to apply stricter review standards focused on water use, electricity demand, environmental impact and public input.
"Utahns deserve confidence that water resources, air quality, utility rates, wildlife, and quality of life will be protected," Cox wrote in a post on X.
He added, "This framework helps ensure that data center development aligns with Utah's long-term interests and reflects Utah values."
The order includes eight principles requiring developers to better protect water systems such as the Great Salt Lake, limit strain on utility ratepayers, and expand opportunities for public comment.
It takes effect immediately and applies to future permitting decisions.
The move comes as the Stratos Project, a massive AI data center campus in Box Elder County, continues to face strong opposition.
O'Leary Claims Coordinated Opposition To Utah AI Data Center
Earlier, O'Leary said opposition to his Utah AI data center was driven by coordinated misinformation and foreign-linked interests tied to China, while defending the project against environmental criticism.
He claimed false narratives spread after approval of the Stratos Project, including exaggerated claims about water use, power demand and size, and said the development would generate its own energy, follow regulations and create jobs.
O'Leary also said his team identified advocacy groups and funding networks behind the backlash, alleging outside influence on efforts to slow U.S. data center growth.
Separately, he defended the 40,000-acre project, saying sustainability measures such as improved cooling systems, battery technology and renewable energy were central to its design.
He dismissed parts of the opposition as manufactured and questioned the authenticity of some online criticism.
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