Utah governor issues new AI data center rules after 9-gigawatt Stratos Project sparks outrage

A 9-gigawatt data centre outraged a Utah community. The governor just issued new rules.

Utah's governor issued an executive order setting new standards for data centres after a 9 GW project backed by Kevin O'Leary sparked protests. Utah Governor Spencer Cox signed an executive order on Friday establishing a "higher bar for data center development" in the state. The order is effective immediately. It follows months of community outrage over the Stratos Project, a 40,000-acre hyperscale data centre campus backed by "Shark Tank" investor Kevin O'Leary that could reach 9 gigawatts of power at full buildout. The framework contains eight principles addressing water resources, air quality, wildlife protection, utility rate impacts, and public comment requirements. "Utahns deserve confidence that water resources, air quality, utility rates, wildlife, and quality of life will be protected," Cox wrote on X. The executive order directs state agencies to adopt the framework. It also requires the Stratos developers to use a phased approach, applying for new permits at every planned expansion. The project cannot proceed as a single blanket approval. Box Elder County commissioners approved the Stratos Project despite significant community opposition. Residents crowded council meetings, circulated petitions, and recently protested outside the Utah State Capitol. More than 2,000 questions and concerns were submitted, containing "a mix of supportive and critical feedback," according to the project's webpage. O'Leary has defended the development repeatedly. Earlier this month, he suggested without evidence that "professional protesters" orchestrated the controversy. He also claimed Chinese funding was fanning the outrage. Local residents rejected both assertions. Supporters say the data centre will create jobs and drive economic growth. Opponents are concerned about water consumption, noise, air quality, traffic, and the impact on the Great Salt Lake, which is already facing an ecological crisis from decades of water diversion. The global race to build AI data centre capacity is intensifying. SoftBank announced €75 billion for 5 gigawatts in France this weekend. The Stratos Project alone would deliver nearly double that capacity in a single location. The scale of AI infrastructure demand is creating land-use conflicts that local governments were not designed to adjudicate. Data centres are becoming strategic infrastructure. In the Gulf, they are being targeted by drones. In Utah, they are being targeted by petitions. The political dynamics are different but the underlying tension is the same: AI infrastructure requires enormous power, water, and land, and the communities that host it are demanding a say in the terms. Data centres are becoming a major political issue ahead of November's US midterms. Communities across the country are rallying against them. In February, residents in New Brunswick, New Jersey successfully blocked a data centre development entirely. The NIMBYism that once focused on housing and wind farms has found a new target. The energy dimension compounds the tension. xAI is powering data centres with unregulated gas turbines in Memphis. SoftBank's Ohio project plans $33 billion in natural gas-fired electricity. The Stratos Project has not disclosed its energy source in detail. For communities that care about air quality and carbon emissions, the power source matters as much as the facility itself. Cox's executive order is a political response to a problem that will only grow. AI compute demand is projected to increase by terawatts over the coming years. The infrastructure to deliver that compute must be built somewhere. Utah is not saying no to data centres. It is saying: not without rules, not without public input, and not without protecting the Great Salt Lake. Whether an executive order is sufficient to balance a 9-gigawatt project against a community of a few thousand people is the question that Box Elder County will answer over the next several years. O'Leary calls the project "Wonder Valley." The residents who live next to it have a different name for it. The governor is trying to find language that works for both.

Utah Tightens AI Data Center Rules As Kevin O'Leary Battles Opposition To Massive Stratos Project

Kevin O'Leary-backed AI data center plans in Utah are now facing tighter state oversight after Gov. Spencer Cox moved to impose stricter development rules amid rising community opposition over environmental and resource concerns. Utah Imposes Stricter Rules In an executive order issued Friday, Cox established a "higher bar for data center development in Utah," directing state agencies to apply stricter review standards focused on water use, electricity demand, environmental impact and public input. "Utahns deserve confidence that water resources, air quality, utility rates, wildlife, and quality of life will be protected," Cox wrote in a post on X. He added, "This framework helps ensure that data center development aligns with Utah's long-term interests and reflects Utah values." The order includes eight principles requiring developers to better protect water systems such as the Great Salt Lake, limit strain on utility ratepayers, and expand opportunities for public comment. It takes effect immediately and applies to future permitting decisions. The move comes as the Stratos Project, a massive AI data center campus in Box Elder County, continues to face strong opposition. O'Leary Claims Coordinated Opposition To Utah AI Data Center Earlier, O'Leary said opposition to his Utah AI data center was driven by coordinated misinformation and foreign-linked interests tied to China, while defending the project against environmental criticism. He claimed false narratives spread after approval of the Stratos Project, including exaggerated claims about water use, power demand and size, and said the development would generate its own energy, follow regulations and create jobs. O'Leary also said his team identified advocacy groups and funding networks behind the backlash, alleging outside influence on efforts to slow U.S. data center growth. Separately, he defended the 40,000-acre project, saying sustainability measures such as improved cooling systems, battery technology and renewable energy were central to its design. He dismissed parts of the opposition as manufactured and questioned the authenticity of some online criticism. 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 Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.