Kevin O’Leary is pushing back against calls to dramatically reduce the size of a proposed artificial intelligence data center campus in northern Utah, arguing that the project remains critical to the United States’ efforts to expand computing infrastructure amid growing global competition and increasing demand for AI services.
The project, known as Stratos, is planned for Box Elder County near the Great Salt Lake and was approved earlier this year as a 40,000-acre development. The campus is expected to include large-scale data center facilities and its own power generation infrastructure, with plans calling for as much as 9 gigawatts of electricity capacity at full buildout.
The dispute intensified after Utah Senate President J. Stuart Adams, who also chairs the Military Installation Development Authority (MIDA), sent a letter urging developers to reduce the project’s footprint by 75%, from 40,000 acres to 10,000 acres. Adams cited concerns involving water use, environmental impacts, heat generation and transparency surrounding the development, according to NBC News.
O’Leary rejected the proposal, describing the requested reduction as inconsistent with the original agreement. His team said it was surprised by the request and is reviewing the matter, while the investor indicated he plans to respond directly.
The Stratos project has become one of the most closely watched AI infrastructure developments in the country because of its enormous scale. Earlier this year, MIDA approved the project, which is expected to span 40,000 acres of private, state and military-linked land in Box Elder County. At full capacity, the site could consume and generate more than twice Utah’s average statewide electricity demand, according to Tom’s Hardware.
Public opposition has grown in recent months as residents and environmental groups questioned the project’s potential effects on wildlife, air quality, local resources and the surrounding rural landscape. Community concerns have become a recurring theme in public meetings and hearings surrounding the development, according to Business Insider.
The race to build AI infrastructure has also become intertwined with broader economic and geopolitical concerns. The United States has sought to expand domestic computing capacity as competition with China over advanced technologies intensifies. AI systems are increasingly viewed as strategically important for national security, defense applications and economic competitiveness.
The debate over Stratos is unfolding against the backdrop of a wider nationwide push to build data centers. Major technology companies including OpenAI, Oracle, Microsoft, Amazon and Meta have announced multibillion-dollar investments in AI infrastructure over the past two years.
One of the most prominent examples is the Stargate initiative, a large-scale AI infrastructure effort involving OpenAI and Oracle. In July 2025, the companies announced plans to add 4.5 gigawatts of data center capacity in the United States as part of broader efforts to expand AI computing resources, according to CNBC.
At the same time, concerns about energy consumption have become increasingly central to discussions about AI development. Data centers require massive amounts of electricity, prompting utilities, regulators and state governments to examine how new facilities could affect power grids and energy costs.
Those concerns recently prompted Utah Gov. Spencer Cox to sign an executive order establishing stricter standards for future data center developments. The framework calls for protections related to water resources, wildlife, air quality, utility rates and public engagement, according to Business Insider.
While developers emphasize economic development, technology investment and national competitiveness, critics have raised questions about resource use, environmental impacts and local oversight.
For now, the Stratos project remains approved at its originally proposed size, although discussions between state officials and developers continue as scrutiny of large-scale AI infrastructure projects grows across the country.
