Celebrity investor Kevin O’Leary is planning to fund the establishment of an artificial intelligence data facility in rural Utah that mirrors his proposed $70 billion, 7.5-gigawatt AI data center complex in northern Alberta. However, the Utah project is encountering strong opposition from local residents concerned about the potential environmental impact of such a massive development in their vicinity.
The Utah data center is set to be located in Box Elder County, a rural area in the northwestern part of the state. Similar to the Wonder Valley AI data center planned for the District of Greenview near Grande Prairie, Alberta, the Utah campus aims to provide around 7.5 gigawatts of computing power and occupy between 10,000 to 13,000 acres upon completion. It is expected to be part of a larger 40,000-acre development on privately owned vacant land, inclusive of a natural gas power plant with a capacity of up to nine gigawatts.
The county commission endorsed two resolutions on May 4 to advance the project, leading to vocal opposition from residents concerned about potential exacerbation of climate change impacts in the region. Proponents, including O’Leary, argue that the data center will stimulate the local economy by generating nearly 2,000 permanent jobs and increased tax revenue for the county while enhancing U.S. computing capability and efficiency.
O’Leary expressed his desire for construction to commence by the end of the following year pending environmental assessments. Responding to worried Utah residents, he emphasized the company’s commitment to transparent project development, stating that all actions would be public and subject to scrutiny.
Environmental concerns are heightened among residents due to the declining levels of the Great Salt Lake. Physics professor Robert Davies warned that the proposed development in a desert valley with minimal precipitation could disrupt the delicate ecosystem relying on daily condensation for sustenance. The project’s potential energy generation output, exceeding the state’s total, raises fears of further ecosystem disruption.
Residents like Brenna Williams, impacted by deteriorating conditions in the area, remain skeptical about the project’s implications on water usage and air quality. O’Leary Digital asserted that the facility would utilize on-site water resources and implement water-efficient systems to reduce consumption significantly.
A group of concerned residents, including Brenna Williams and her son Tameron, formed the Box Elder Accountability Referendum, advocating for a public vote to determine the project’s fate. They seek transparency, accountability, and a fair distribution of risks associated with the project.
The referendum application is under review by the county’s legal team, with a response expected by the end of the month. If approved, the group aims to gather sufficient signatures for the project’s approval question to appear on the November midterm election ballot. Box Elder County Commissioner Tyler Vincent stressed that the commission’s decision to advance the project marks the beginning, not the conclusion, of oversight processes.
Regarding the Alberta project’s progress, O’Leary mentioned the ongoing permit acquisition process. The Alberta government clarified that no environmental impact assessment would be conducted due to the project’s utilization of standard power and water systems. However, detailed technical assessments are required to demonstrate the project’s safety and environmental compliance before construction can start.
Reeve Ryan Ratzlaff of the Municipal District of Greenview, partnering with O’Leary Ventures on the Alberta project, highlighted the upcoming community engagement initiatives to gather feedback. While residents’ sentiments are yet to be fully gauged, Ratzlaff expressed optimism about the project’s potential benefits for the region, province, and county.
