A sprawling, 40,000-acre data center planned for northern Utah has stirred up controversy across the state over the past month, partly because of the pollution it’s expected to contribute to a region that already struggles with smog.
Officials with the quasi-governmental Military Installation Development Authority, or MIDA, which approved the project and created tax incentives to spur its development, have become de facto cheerleaders for the data center campus, called the Stratos Project. They say Kevin O’Leary, the Canadian TV personality and the main backer of Stratos, specifically selected a remote valley north of the Great Salt Lake because a gas pipeline runs through it.
The plant that will generate electricity for the data complex would be powered “100 percent off the Ruby Pipeline,” a MIDA official said in April.
But after weeks of protests, reams of comments against the project, and disgruntled Utahns digging into state leaders’ finances and family businesses, the state’s Republican governor has now asserted the project will “never” be solely powered by natural gas.
“That’s never going to happen,” Governor Spencer Cox told The Salt Lake Tribune last week. “The very first phase will be natural gas, but the other phases should not be. They should be nuclear, and they should be geothermal, and solar and other technology.”
The proposed Stratos Project is light on details so far. O’Leary has said that at full build, it will be one of the biggest data centers in the world, as large as Washington, D.C. Scientists, environmental advocates and some residents have raised alarms about the impact that the project — and the possibility of a massive natural gas plant to power it — could have on air quality, greenhouse gas emissions, and water supplies near the shrinking Great Salt Lake.
According to some estimates, a 9-gigawatt power plant entirely powered by natural gas could raise Utah’s carbon emissions by 64 percent. Although it’s still unclear how much water the facility would need, the project’s developers have said they’re working to secure 13,000 acre-feet in Hansel Valley and the surrounding area, which is mostly agricultural. That’s enough water to meet the needs of more than 20,000 households in Utah.
Trent Nelson / The Salt Lake Tribune
Opposition to the proposal has been intense. A water right filed to support the data center and power plant received nearly 4,000 letters of protest this month. Opponents held a rally at Utah’s Capitol last week and delivered a letter to Cox with more than 6,000 signatures urging him to take “binding action” to preserve the Great Salt Lake instead of issuing platitudes over social media.
During a news conference on Wednesday announcing a geothermal partnership with the neighboring states of Arizona, Colorado, and New Mexico, Cox acknowledged problems with the rollout of the Stratos Project in Box Elder County, saying future decisions like it should involve his office and elected representatives.
“There’s no question, the process was not good,” Cox told reporters. “It’s something I’ve worried about for a long time with that entity that made that decision.”
Cox appeared to be referring to MIDA, a development authority ostensibly meant to fund projects to support the military. Its biggest developments in recent years, however, include a hotel at the Deer Valley luxury ski resort and a swanky ski village. MIDA officials and other Stratos supporters have called the project a matter of national security.
“That was not a decision that was made by me or the Legislature,” Cox said. “In the future, those are decisions that should be made by us, so that we can do these types of things ahead of time to make sure people understand what’s actually happening out there. That did not happen, and it should happen.”
When he made his comments, Cox was hosting the final workshop in his “Energy Superabundance” initiative as chair of the Western Governors Association, part of a broader push that complements his “Operation Gigawatt” goal to more than double Utah’s energy production over the next decade.
Electricity use across the country has held relatively steady for decades, but a surge in demand for artificial intelligence computing and data centers is putting a strain on the electric grid. That’s left Western states scrambling to build new energy supplies.
At the same time, public skepticism toward large data center developments appears to be growing, particularly over concerns involving water use, noise, energy costs, and pollution.
“It feels like the future is here,” Cox said during his opening remarks at the workshop. “It’s coming quicker than people asked for, and there are so many amazing things that can come from that future, and some pretty awful ones as well.”
Cox has also pushed for faster permitting timelines for large energy and infrastructure projects, arguing that environmental review processes often take too long. “This whole idea of being rushed — I’m so tired of our country taking years to get stuff done,” he said in April. “It’s the dumbest thing ever. We think that taking time makes things better or safer. It absolutely does not.”
Last week, Cox struck a more measured tone as criticism of the project continued to mount. “One of the things people are worried about, and rightfully so, is air quality,” he said in a brief interview as he left the workshop. “That’s a yearlong [permitting] process. … We’re not speeding those up. Those are really important, and we want to make sure that things are done the right way.”
Earlier this month, O’Leary, who was featured on the reality show “Shark Tank,” also seemed to suggest that renewables could help power the Stratos Project. He described other technological advances — such as turbines cooled with air rather than water — before turning to the natural gas power causing a stir.
“We can also put a percentage of the power generation through solar, wind, and batteries, because the battery technology is 10x more efficient than it was just five years ago,” O’Leary posted on X on May 5. “So that’s very helpful, because it makes the cost of energy lower.”
But he stopped short of fully endorsing renewables for his project.
Logan Mitchell, a climate scientist and analyst with Utah Clean Energy, calculated that a 9-gigawatt natural gas power plant will produce around 35 million metric tons of carbon emissions each year. By comparison, the entire state of Utah generates 55 million metric tons annually, according to the U.S. Energy Information Administration. So the Stratos Project could raise Utah’s emissions by about 64 percent.
“That’s massive,” Mitchell said. But it could be even more, because his estimate didn’t account for “any additional methane leakage” from piping and using the natural gas, he said.
