Why Utah’s massive new data center plan has drawn such a backlash

The backlash comes as the Trump administration has made it a priority to expand artificial intelligence infrastructure and data center development. 

In a new Gallup poll, the organization found that most people are against AI data centers being built near their communities. The survey, conducted in early March, found 7 out of 10 oppose constructing data centers for AI in their local area, with 48% strongly opposed to the idea. 

But despite the growing concerns among residents in the county, Gov. Spencer Cox (R-UT) remains a strong advocate of the project, arguing that AI data centers are essential to U.S. national security when competing against China. 

“I don’t know that we have our eyes as open as we should on this,” Cox said earlier this week on a panel with Deseret Voices. “If China beats us to that, they lock us down, and I don’t know where we go from there.”

The project’s primary investor is Kevin O’Leary, widely known as “Mr. Wonderful” from Shark Tank. O’Leary has also been vocal in his support, citing that he is the only developer of data centers with an environmental studies degree, adding that he is aware of the environmental concerns. 

The project in Box Elder County could be one of the largest facilities in the country, spanning 40,000 acres within the Hansel Valley. 

Once fully built, the data center is projected to consume nearly 9 gigawatts of electricity. New York City, by comparison, uses about 10 gigawatts of power during summer peaks.

The location of the data center was chosen partly due to a major natural gas pipeline, known as the Ruby Pipeline, that runs through Hansel Valley. Developers of the project said the center will be powered by the natural gas pipeline, not the power grid, arguing it would not raise electricity bills.

Utah’s Military Installation Development Authority also approved the project in late April. MIDA was created to help support military installations in the state. MIDA has noted that the project will help to support military readiness by providing reliable energy and data storage. 

Following the approval of the project, Cox posted a series of messages on X to address the concerns and questions regarding the data center. He noted that the project developer has agreed to build out the facility in phases, with the first not to exceed 1.5 gigawatts. 

“Utah must remain a place where we can pursue opportunity, protect the things we love, and treat each other with decency along the way,” Cox posted. “I believe we can support economic strength while also protecting our land, air, water, and way of life. That remains my commitment to the people of Utah.” 

The backlash against the data center stems from residents’ concerns about the rapid approval of the project and its potential impacts on the state’s water supply and energy resources. 

Hundreds of protesters took to the Box Elder County Commission meeting, where the commissioners cast their final vote on the project. The commissioners were met with intense backlash from residents, resulting in them moving to a private room to finish the meeting.  

Environmental groups have warned that the project could harm the Great Salt Lake ecosystem, as it already faces shrinking supply due to overconsumption and droughts. 

“The Stratos hyperscale data center project should deeply concern anybody who drinks water, and breathes air, and especially Utahns that care for the protection of the Great Salt Lake basin, which is already in crisis,” Maria Archibald, chapter organizer for the Sierra Club in Utah, told the Washington Examiner in a statement. 

“Its water demand and energy use threaten to destroy delicate habitat and wildlife ecosystems that are in a fragile state, because the watershed is already on the brink of collapse. Utahns want a livable future, and this project jeopardizes the very notion,” Archibald added. 

O’Leary has pushed back against those raising environmental concerns. He told CNN earlier this month that “We’re not gonna drain the Great Salt Lake. That’s ridiculous.”

The Shark Tank investor has gone even further, accusing those opposing the project of being funded by the Chinese government. 

Data centers are known for using an extensive amount of water for their cooling systems. On average, a large data center can use an estimated 5 million gallons of water per day. 

The project plans to use a “closed-loop” system that would recirculate the same water. The developers have secured about 3,000 acre-feet of water rights on the site. 

Box Elder County residents earlier this week filed two applications for a referendum challenging the project. 

“Instead of speaking with us, Kevin O’Leary went on social media saying we were out-of-state paid protestors, and we don’t want people from out-of-state making decisions for us. The only thing he’s right about is that we don’t want him, an out-of-state billionaire, making decisions for us,” Brenna Williams, the referendum’s lead sponsor, said in a statement to KUTV. 

“This referendum is proof that Box Elder residents are overwhelmingly opposed to the center and the lack of process. We want no part of this development and its threat to our environment, water, air, health, and way of life,” Williams added.

Recently, a few hundred protesters rallied in front of the Utah Capitol on Thursday, chanting “no data centers” before handing a petition to the governor’s office with more than 7,000 signatures opposing the project, Utah News Dispatch reported. 

The project will be built out in phases over the next decade. The developer of the project is continuing to raise money for the project and plans to host future town halls. 

The fight unfolding in Utah is similar to battles playing out across the country to restrict or ban data center development. 

Local governments have taken it upon themselves to regulate or halt the construction of data centers.

In April, the suburban city of Aurora, Illinois, west of Chicago, recently imposed some of the country’s strictest restrictions on data centers, requiring developers to comply with new zoning requirements, energy use rules, water consumption limits, and noise standards. 

Other instances include Frederick County, Maryland, which has seen grassroots efforts to hold a referendum on data center zoning plans.

Maine state legislators last month attempted to pass a bill to ban data centers until November 2027, but Gov. Janet Mills (D-ME) vetoed the bill because it did not include an exemption for a project under development. Maine would have been the first state to issue a moratorium on data centers. 

At least 11 states have proposed legislation to restrict or ban data center development since late 2025, according to Axios.