Kevin O'Leary's Data Center Project Faces Local Opposition in Utah

<figure> <img alt="Split screen of Kevin O'Leary at a 2026 red carpet event next to an aerial shot of Utah desert." src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/268720_Utah_Stratos_data_center_LEDE_0001.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" /> <figcaption> </figcaption> </figure> <p class="has-drop-cap wp-block-paragraph">On the morning of May 11th, the celebrity investor Kevin O’Leary appeared on Fox Business and announced that he was under attack by Chinese agents.</p> <p class="wp-block-paragraph">For weeks, he had been going on TV and posting online to promote his project, called Wonder Valley, after his nickname from the reality show <em>Shark Tank</em>, Mr. Wonderful. It was planned to be the largest data center in the world, occupying 40,000 acres north of Great Salt Lake in rural Box Elder County, Utah. A dedicated gas power plant would connect to an interstate pipeline and generate 9 gigawatts of electricity, exceeding the average consumption of the entire state. O’Leary stated that the project was progressing rapidly, supported by Utah’s governor and legislative leaders, indicating that “it shows China and the rest of the world we aren’t messing around.”</p> <p class="wp-block-paragraph">However, wearing a black baseball cap printed with the words “Utah National Security,” he told Maria Bartiromo that he had noticed a sudden increase in online criticism directed at him since the three county commissioners unanimously approved his data center the week before. He speculated that this backlash could only be explained by external adversaries.</p> <p class="wp-block-paragraph">“Who would want us to stop building our electrical grid? Who would want to stop us from having compute capacity to develop AI? Which adversary would want that?” he asked Bartiromo. “There’s only one: It’s China.”</p> <p class="wp-block-paragraph">O’Leary claimed to have investigated the IP addresses of critics and read names of individuals he believed were connected to the backlash. He invited them to “come out, come out, wherever you are and let’s shine the light of transparency on what you’re doing.”</p> <p class="wp-block-paragraph">Six weeks later, Bartiromo closed a segment by referencing a note O’Leary had posted, clarifying that he had no evidence that Alliance for a Better Utah, Elevate Strategies, Gabrielle Finlayson, Taylor Knuth, or Josh Kanter were funded by China or the Chinese Communist Party.</p> <figure class="wp-block-pullquote"><blockquote><p>“How the heck would anybody think you could build something out here?”</p></blockquote></figure> <p class="wp-block-paragraph">Fox News Media stated it was unaware of any evidence linking those individuals to Chinese funding. O’Leary’s clarification marked a shift in tone, as he had previously characterized the project as inevitable and opposed only by outside forces. Less than three weeks later, O’Leary and Fox were sued for defamation by the aforementioned organizations. O’Leary and Fox sought to have the suit dismissed in late September.</p> <img alt="View of grain silos from the perspective of a driver looking at a rearview mirror, showing the road behind them in the reflection." src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/8d94a4e976d45f48ac1e532c3c190ef9f0def370.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" title="View of grain silos from the perspective of a driver looking at a rearview mirror, showing the road behind them in the reflection." /> <p class="wp-block-paragraph">Over the past five months, interviews with local officials, residents, and others involved with the project, including Paul Palandjian, CEO and cofounder of O’Leary Digital, revealed a project that moved with urgency. Developers raced against other speculators, O’Leary against rival projects, and Utah against competing states, all while neglecting to inform the residents of Box Elder County.</p> <p class="wp-block-paragraph">The county commissioners who approved the project were informed only five weeks prior to their vote, having previously heard only rumors.</p> <img alt="An abandoned farmhouse in the Utah desert." src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/8baf6eb732bc75a8b01261853933dc3edaeb4d3f.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" title="An abandoned farmhouse in the Utah desert." /> <p class="wp-block-paragraph">Lee Perry, one of the county commissioners, initially found the rumors implausible. However, in early March, he visited Hansel Valley after receiving calls from resident Tim Munns, who had been informed about discussions regarding land acquisition for a data center.</p> <p class="wp-block-paragraph">Perry was skeptical, noting the lack of infrastructure in the area. Munns had lived there for decades and was concerned about the potential data center. He sought answers from state officials, but many were unaware of the project.</p> <img alt="Golden Spike National Historical Park next to a railroad with an antique train." src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/386952595d51ff461a9592ab6e0a80e61b325997.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" title="Golden Spike National Historical Park next to a railroad with an antique train." /> <p class="wp-block-paragraph">Perry and Munns were not the only ones concerned. The announcement of a “large-scale powered compute campus” in Box Elder County raised questions for Perry, who had not been consulted about the project.</p> <hr class="wp-block-separator has-alpha-channel-opacity" /> <p class="wp-block-paragraph">Goldman Sachs estimates that $580 billion will be invested in AI infrastructure in the United States in 2026, much of it tied to data centers being built by major tech companies. The scale of these data centers is significantly larger than previous generations. While size is important, speed is paramount, according to analysts.</p> <img alt="Aerial view of Utah suburbs with Meta's Eagle Mountain data center in the distance." src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/565e4212680edd6e22fc6e2e56e0b39b3779692b.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" title="Aerial view of Utah suburbs with Meta's Eagle Mountain data center in the distance." /><img alt="An aerial view of Meta's Eagle Mountain data center." src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/ce681808f1fb4c2cef73d7ad55eb4b4bcface284.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" title="An aerial view of Meta's Eagle Mountain data center." /> <p class="wp-block-paragraph">The urgency surrounding AI development has led to significant changes in the construction of data centers, with companies racing to secure resources and permits. Developers are increasingly building their own power plants to ensure a reliable energy supply.</p> <img alt="Aerial view of grass and mud next to a road." src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/1fc1c9c7c78c545d89566c5bb18b6e0c85472feb.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" title="Aerial view of grass and mud next to a road." /> <p class="wp-block-paragraph">In addition to land and power, developers require permits, which have become more challenging to obtain due to local opposition. At least 75 projects were blocked or delayed in the first quarter of 2026. Developers are willing to pay a premium for land that is permitted and ready for construction.</p> <p class="wp-block-paragraph">The business of assembling land for data centers is known as “powered land assemblage,” and various firms are searching for suitable locations across the country.</p> <p class="wp-block-paragraph">The man who contacted Munns about land was Austin Pritchett, a real estate developer who focuses on zoning and permitting. He approached landowners in Hansel Valley, emphasizing the potential for development.</p> <p class="wp-block-paragraph">Pritchett later introduced O’Leary to the project, which was supported by the Utah government, as they sought to attract data centers to the state.</p> <p class="wp-block-paragraph">O’Leary met with Governor Spencer Cox and other state leaders to discuss the project, which was described as a significant opportunity for Utah.</p> <p class="wp-block-paragraph">On March 25th, MIDA officials informed the county commissioners that their county would be getting an AI data center powered by a 9-gigawatt gas plant. They stated that tax subsidies had already been negotiated, and the developers would benefit from significant tax breaks.</p> <p class="wp-block-paragraph">The commissioners were concerned about the lack of communication and the speed of the project. They were told that if they did not approve the project area by the end of April, financing would fall through.</p> <p class="wp-block-paragraph">The commissioners expressed their concerns about the project, noting that they had not been adequately informed and that the process felt rushed.</p> <hr class="wp-block-separator has-alpha-channel-opacity" /> <p class="wp-block-paragraph">The commissioners faced pressure from MIDA and state officials to approve the project, leading to a contentious meeting where public opposition was evident. Despite the backlash, the commissioners ultimately voted to approve the project area.</p> <p class="wp-block-paragraph">The approval process faced criticism, with residents expressing frustration over the lack of public input and transparency. The speed of the project and the perceived lack of consideration for local concerns fueled anger among residents.</p> <p class="wp-block-paragraph">In the aftermath of the vote, public outrage continued to grow, leading to protests and calls for accountability from local officials.</p> <p class="wp-block-paragraph">O’Leary’s project has become a focal point of controversy, with residents voicing concerns about environmental impacts and the rapid pace of development.</p> <p class="wp-block-paragraph">As of late September, the project remains in limbo, with ongoing litigation and public opposition complicating the future of the data center.</p> <p class="wp-block-paragraph">The political landscape has shifted, with state lawmakers discussing potential regulations for data centers in response to public concerns.</p> <p class="wp-block-paragraph">O’Leary continues to assert that the project is moving forward, but the lack of progress and growing opposition may impact its viability.</p> <p class="wp-block-paragraph">The situation in Box Elder County reflects broader tensions surrounding data center development, as communities grapple with the implications of rapid technological expansion.</p>