Kevin O’Leary, the investor known as Mr. Wonderful, acknowledged that he mishandled public communication around his Stratos data center project in Box Elder County, Utah.
Sharing a video clip on X on Saturday, the “Shark Tank” investor said, “We have not properly communicated what we do. I have no interest in causing an environmental disaster on my legacy. That’s never going to happen.”
Transparency Pledge
O’Leary said his team will release plans for a one-gigawatt facility, detailing its heat, light, noise and water profile, so residents “can come and kick the tires and extrapolate from this.”
He added that becoming “more ingrained with the community” will now shape all future projects.
In the video posted, O’Leary apologized for any offense caused and urged the public to lend him an open ear, saying he wants residents to hear him out on “what I’m going to show you in the months ahead.”
The apology marks a shift from O’Leary’s stance in May, when he said he was “the only data center developer” to have studied the environment and called backlash against the project “kind of hypocritical,” arguing that sustainability was “at the heart” of what his company does.
The Stratos project was originally pitched at up to 9 gigawatts across a 40,000-acre site near the Great Salt Lake, an area also used as a migratory bird sanctuary.
Box Elder County commissioners approved the plan in May despite vocal opposition, with backers citing roughly 10,000 construction jobs and 2,000 permanent positions.
Utah Senate President J. Stuart Adams publicly called for a 75% reduction in the facility’s size, and O’Leary has since pledged to scale back the development, though a finalized size has not been confirmed.
Physicist Robert Davies of Utah State University has separately questioned the project’s true power draw, estimating it could reach 16 gigawatts at full capacity. Some residents are also seeking a public vote on the project this November.
A Broader National Pattern
The pushback comes amid an accelerating nationwide resistance to AI data centers.
Data Center Watch reported that at least 75 projects worth roughly $130 billion were blocked or delayed in just the first quarter of 2026, the largest single-quarter disruption on record.
A May Gallup survey found 71% of Americans oppose data centers being built near their homes, a trend investors are increasingly weighing against continued capital spending by hyperscalers.
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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