Kevin O'Leary Says Americans Don't Understand Data Centers — But Utah Residents Aren't Buying It
Kevin O'Leary, the venture capitalist and "Shark Tank" star, is facing fierce resistance from residents in Box Elder County, Utah, over his proposed Stratos Project — a massive, 40,000-acre AI data center campus. O'Leary took to social media on Friday, May 8, 2026, to argue that Americans have misconceptions about data centers and their environmental impact. "It's understanding the concerns of people, but at the same time, think about the number of jobs," O'Leary posted on X.
Despite community opposition, Box Elder County commissioners unanimously approved the project on Monday, May 4, 2026, following a raucous public meeting at the county fairgrounds. The project is also backed by Utah's Military Installation Development Authority (MIDA), which voted to move the development forward. O'Leary appeared virtually at a MIDA meeting, touting the project's unprecedented speed: "This is extraordinary. It's unbelievable. It's unprecedented that we could accelerate this so fast."
O'Leary: Critics Are 'Professional Protesters' Bused In
O'Leary has dismissed local opposition by claiming, without providing evidence, that protesters were "bused in" from out of state and that criticism came from "professional protesters" who were "paid by somebody." This claim has further inflamed tensions, with residents like McKinzie Richins, who lives seven miles from the planned site, telling reporters: "Having this come in all of a sudden is just going to change everything. We feel like this has been forced upon us."
Why the Stakes: Water, Jobs, and National Security
The Stratos Project has become a flashpoint in a national debate over the rapid expansion of AI data centers. Opponents raise several concerns:
- Water usage: Data centers can consume millions of gallons of water daily for cooling, which could strain Utah's arid water supply.
- Utility costs and noise: Residents worry about increased utility bills and diminished quality of life.
- Rushed timeline: O'Leary admitted the project is being "rushed" due to fierce competition — both domestic and global.
O'Leary, who holds a degree in environmental studies from the University of Waterloo, countered: "When a group comes to me and says, 'Look, I have concerns about water, I have concerns about air, I have concerns about wildlife,' I totally get it." However, he offered no specific evidence to assuage those fears.
National Security and the China Factor
O'Leary and Utah Governor Spencer Cox have framed the data center as a matter of national security. At the MIDA meeting, O'Leary warned: "China built 400 gigawatts of new power over the last 24 months, much of it is powering AI data centers. We're in a race with them, and we seem to have gone to sleep." The project's location was chosen partly for its proximity to military installations, with MIDA's executive director stating Stratos would become "one of the most sustainable and effective data centers in the country."
Broader Implications: The AI Data Center Boom Meets Local Resistance
O'Leary's Utah battle reflects a growing nationwide trend: communities pushing back against AI data centers. From Virginia to Arizona, residents are questioning the trade-offs between job creation and environmental costs. O'Leary's combative stance — labeling opponents as paid outsiders — risks alienating the very communities data center developers need to win over.
What This Changes
The Stratos Project is likely to proceed, but the controversy could set a precedent for future developments. If O'Leary's claims of paid protesters are disproven, it may erode public trust in developers. Conversely, if water and power demands are managed transparently, it could offer a template for responsible data center growth.
For now, the standoff in Box Elder County underscores a pivotal question: can the breakneck expansion of AI infrastructure coexist with community concerns about sustainability and quality of life? As O'Leary himself noted, "the whole world knows about this project now."
Note: This article was informed by Business Insider, KUTV, and The Salt Lake Tribune reports. For more on international tensions, see coverage of Putin claims Ukraine war ‘coming to an end’ after Trump-brokered three-day ceasefire and the Myanmar junta touts rare ruby as US lobby scandal deepens.
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