Kevin O’Leary consents to reduce Utah AI data center size after request for 75% cut

Kevin O’Leary Considers Scaling Back AI Data Center Plans in Utah

Kevin O’Leary, the chairman of O’Leary Ventures and a familiar face from “Shark Tank,” has indicated a willingness to reduce the scope of a major artificial intelligence data center project in Utah. This comes after key state lawmakers expressed the need for substantial cuts and further environmental protections.

In an interview with NBC News, O’Leary mentioned he is open to downsizing the Stratos data center initiative. This decision follows a statement from Utah Senate President J. Stuart Adams, who called for a significant 75% reduction in the project’s proposed square footage.

O’Leary acknowledged, saying, “We have no other choice.” The data center is touted as one of the largest developments aimed at artificial intelligence globally, covering around 40,000 acres in Box Elder County.

In a recent letter, Adams requested that O’Leary cut the project’s area down to about 10,000 acres and implement further environmental measures before proceeding.

“I wrote a letter directly to Kevin O’Leary requesting that the area of the proposed data center project be reduced by 75% from 40,000 acres to approximately 10,000 acres,” Adams stated.

The Senate President also emphasized the importance of stronger safeguards, increased public transparency, and the protection of Utah’s natural resources.

Adams suggested that as part of the operational commitment, the project should utilize cutting-edge technology to lessen water usage, direct excess treated water to the Great Salt Lake, and establish agreements with state officials aimed at preserving wildlife habitats and agricultural lands.

He remarked, “Utah can pursue economic opportunities while protecting our water, air, wildlife and communities. We can and must do both.”

O’Leary speculated that growing opposition and political pressures may have fueled these demands, noting the rising discontent surrounding the development.

He mentioned, “I know he did it for political reasons. He has to deal with those issues and so do I.”

Residents and environmental advocates have raised concerns that the data center could strain local water supplies, power resources, and surrounding communities. O’Leary had earlier dismissed many of these worries as misinformation, accusing critics of spreading unfounded claims regarding the project.

He added, “All of these people have a right to information. Why are they profiting off of false initiatives? Who is spending all this money to put all these falsehoods and outright misinformation and lies out there and incite these people?”

Adams pointed out that various legislative committees are looking into how large-scale projects might affect Utah’s water supplies, energy systems, land use, and the environment. On top of that, he noted that Utah is committing more than $1 billion toward water conservation and infrastructure improvements while enhancing oversight of large developments.