Kevin O’Leary scales back Utah data center after local outcry

After months of sustained opposition from Utah residents and state officials, entrepreneur and Shark Tank investor Kevin O’Leary has agreed to significantly scale down his planned data center project in the state. The decision marks a major shift for Project Stratos, which was originally proposed to span 40,000 acres within and around the Locomotive Springs Waterfowl Management Area.

In a letter sent Thursday to Utah Senate President J. Stuart Adams, O’Leary announced he would remove 19,430 acres from the project. This adjustment reduces the footprint to approximately 20,570 acres—roughly half of the original plan. The move comes just days after Adams publicly urged O’Leary to shrink the project by 75 percent, citing concerns over environmental impact, particularly water consumption.

The decision follows growing scrutiny from local activists, conservation groups, and state representatives who questioned the sustainability of the project. Critics argued that the massive infrastructure would strain regional water resources and disrupt sensitive wildlife habitats. O’Leary’s revised proposal now aims to address some of these concerns by reducing the land area and presumably lowering operational demands.

O’Leary’s initial announcement of Project Stratos in 2023 positioned it as one of the largest data center developments in the United States. The project was designed to house servers for AI workloads, leveraging Utah’s cool climate and abundant land supply. However, the environmental and social implications quickly became a focal point of debate. Local leaders, including Adams, emphasized the need for sustainable practices, particularly around water usage—a critical issue in Utah’s arid regions.

While the reduction in acreage represents a compromise, it remains unclear whether the adjustments fully satisfy critics. Environmental advocates continue to push for further concessions, including stricter water conservation measures and independent impact assessments. For now, O’Leary’s decision signals a willingness to adapt, though the long-term viability of the project hinges on ongoing negotiations with stakeholders.

As the tech industry expands its infrastructure footprint, the outcome of Project Stratos may serve as a case study for balancing innovation with environmental and community concerns. The revised plan could set a precedent for future large-scale developments in regions facing similar challenges.