Summary
Kevin O’Leary has agreed to reduce the scale of a proposed Utah data center project after state lawmakers raised concerns about water consumption and environmental impacts. The Stratos development, originally described as a 40,000-acre proposal, will be substantially scaled back and retooled with new environmental commitments, though the plan is still at an early stage with no approvals or permits submitted.
Project downsizing and land use
In a letter dated Thursday to Utah Senate President J. Stuart Adams, O’Leary pledged to cut the 40,000-acre Stratos development in half. Earlier reports noted an agreement to reduce the project by 75% following demands from legislators worried about the proposal’s effects. Much of the land retained after the revisions is intended to be left as open space.
The original Stratos footprint was described as nearly three times the size of Manhattan. Under the newly outlined changes, thousands of acres will be designated for open space, wildlife protections and continued agricultural use through an arrangement with the Utah Department of Natural Resources.
Water and environmental commitments
Among the concessions, O’Leary committed to dedicating new water to the Great Salt Lake. He also agreed to deploy heat-capture technology and to submit the project to independent scientific and engineering reviews focused on environmental impacts, water use, infrastructure demands and long-term sustainability.
Regulatory status and public access
Adams emphasized that the proposal remains in its earliest stages and that no approvals or permits have been applied for or issued. The development must still proceed through a full permitting and environmental review process. To enhance transparency, a centralized public-facing website will be created in coordination with state agencies so Utah residents can access project information, review materials, environmental analyses and updates.
Context
The concessions are part of a broader wave of scrutiny surrounding AI infrastructure buildout. In his letter, O’Leary said many environmental concerns had been overstated.