Utah's governor just tightened the rules for Kevin O'Leary's giant AI data center

Utah Governor Spencer Cox issued an executive order Friday establishing stricter rules for large-scale data center development, directly responding to community backlash over Kevin O'Leary's proposed 40,000-acre Stratos Project in Box Elder County. The new framework mandates protections for water resources, air quality, wildlife, and utility rates while requiring transparent public comment opportunities. The order takes effect immediately amid growing tensions over the project's environmental and quality-of-life impacts.

Utah's governor is all for new AI data centers https://www.businessinsider.com/utah-data-center-box-elder-kevin-oleary-governor-spencer-cox-2026-5 — under certain conditions. After a massive data center project backed by "Shark Tank" investor Kevin O'Leary outraged many Utah residents, the governor is issuing new parameters around its development. In an executive order on Friday, Gov. Spencer Cox established a "higher bar for data center development in Utah." "Utahns deserve confidence that water resources, air quality, utility rates, wildlife, and quality of life will be protected. This framework helps ensure that data center development aligns with Utah's long-term interests and reflects Utah values," Cox wrote in an X post. The framework contains eight principles that address a range of issues, including protecting water resources such as the Great Salt Lake and mitigating the impact on wildlife. Protecting utility rate payers, leaning into "human-led AI development," and providing "transparent, meaningful and thorough opportunities for public comment" were also among the outlined principles. The executive order, which directs agencies to adopt the framework, is effective immediately. Tensions in Utah have been high for months, particularly in Utah's Box Elder County, where commissioners approved plans for the Stratos Project, a hyperscale data center campus spanning 40,000 acres, despite community opposition. The development, also dubbed "Wonder Valley" after O'Leary, who calls himself "Mr. Wonderful," could reach 9 gigawatts of power when all is said and done. Many residents have fiercely opposed the development, crowding local council meetings and circulating petitions. Recently, some critics protested the data center outside the Utah State Capitol. While supporters say the data center will create jobs and spur economic growth, opponents are concerned about its environmental impact, noise levels, air quality, traffic, and the overall quality of life for nearby residents. O'Leary has defended the development several times. Earlier this month, he suggested — without evidence — that " professional protesters https://www.businessinsider.com/kevin-oleary-blames-paid-activists-for-utah-data-center-protests-2026-5 " orchestrated much of the controversy, that AI amplified some opinions, and that Chinese funding https://www.businessinsider.com/kevin-oleary-accused-data-center-critics-chinese-agent-utah-locals-2026-5 was fanning the outrage. A webpage for the Stratos Project said residents submitted over 2,000 questions and concerns that included "a mix of supportive and critical feedback." In a May X post, Cox said the developers behind the Stratos Project agreed to use a phased approach to development, meaning they'll need to apply for new permits for every planned addition. Data centers are becoming a major political issue ahead of November's midterms. Communities across the country are rallying against them, pressuring local politicians. In February, residents in a New Jersey city, for instance, successfully blocked a data center https://www.businessinsider.com/data-center-canceled-new-brunswick-new-jersey-community-opposition-2026-2 development.