On Tuesday, Kevin O’Leary pushed back against growing opposition to his massive Utah AI data center project, arguing environmental criticism is overstated even as concerns mount over fossil fuel use, water consumption and local ecological strain.
O’Leary Defends Utah AI Data Center
The “Shark Tank” investor addressed backlash surrounding his proposed Stratos project in Box Elder County, Utah — a sprawling 40,000-acre development expected to generate up to 9 gigawatts of power for artificial intelligence infrastructure.
O’Leary said sustainability remains central to the project, citing alternative cooling systems, battery improvements and renewable energy options.
“I’m pretty aware of what these concerns are,” O’Leary said in a video shared on X, pointing to issues including air, water use, heat and pollution. “Sustainability is at the heart of what we do.”
He also dismissed some opposition as manufactured, saying that many protesters are outsiders and calling aspects of the social media backlash AI-generated, adding it was “kind of hypocritical.”
Utah AI Megaproject Faces Scrutiny
Last month, Military Installation Development Authority executive director Paul Morris told county officials that the project’s power supply would be entirely generated by natural gas, Axios reported.
He added that while the site is ultimately expected to scale to 9 gigawatts, compared with Utah’s average annual power consumption of 4 gigawatts, the additional capacity could also serve as a valuable backup energy source for the state.
The scale of the development has intensified fears over emissions and water demand in drought-prone Utah, where the shrinking Great Salt Lake already poses environmental challenges.
During a county meeting, dozens of residents protested the proposal, with signs reading “People before profits,” reflecting broader local concerns over resource strain.
AI Infrastructure Boom Meets NIMBY Resistance
O’Leary’s Utah and Alberta projects highlight the increasing tension between AI expansion and community resistance.
According to The Economist, NIMBY (Not In My Backyard) protests helped stall $156 billion worth of U.S. data center projects in 2025, with potential losses expected to climb further in 2026 as states including New York, Maine, Oklahoma and Georgia move to restrict or block major large-scale developments.
Meanwhile, the five major hyperscalers — Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT) and Oracle Corp (NYSE:ORCL) — have collectively tripled their capital expenditures to more than $750 billion.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Kathy Hutchins / Shutterstock.com
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