What we know so far: The Military Installation Development Authority (MIDA) in Utah has provisionally approved a new hyperscale AI data center project estimated to consume nearly 9 GW of power – more than twice the state's current electricity demand of around 4 GW. The project is now awaiting final approval from county officials, who are expected to vote on Monday.
According to the The Salt Lake Tribune, the Stratos project will be developed across roughly 41,200 acres in an unincorporated area of western Box Elder County. The site includes about 40,000 acres of private land and approximately 1,200 acres of military and state-owned property. The lead developer is O'Leary Digital, owned by billionaire investor Kevin O'Leary, widely known as "Mr. Wonderful" on the ABC show Shark Tank.
On Friday, O'Leary appeared before MIDA via video conference to present the proposal, outlining plans to build an on-site power plant. He said the approach aligns with directives from Donald Trump encouraging technology companies to generate their own electricity to meet growing AI-related demand. O'Leary also urged officials to approve the project quickly, arguing that time is critical if the US hopes to compete with China in the AI race.
According to the blueprint, Phase 1 will include a 3 GW power plant connected to the Ruby Pipeline, a 680-mile interstate natural gas line that runs from Wyoming to Oregon via northern Utah.
Speaking to county commissioners about the data center's massive power requirements, MIDA executive director Paul Morris said the project will "not take one electron" from the existing grid. He added that it could eventually feed surplus power back into the system.
In a Facebook post in February, O'Leary praised Utah Gov. Spencer Cox and three unnamed senators for being "pro-business (and) pro-data center," amid growing protests from rural communities over the rapid expansion of energy-intensive AI data centers across the country. He also said the project would need "every incentive" it can get, as he works to raise billions of dollars to fund both the power plant and the data centers.
According to reports, MIDA has already reduced the project's energy use tax from the standard 6% to a reduced 0.5% and waived 80% of property tax revenue, citing the potential creation of an estimated 2,000 permanent jobs at the facility.
To justify the substantial government subsidies, O'Leary said the data centers would create thousands of jobs, boost the local economy, and attract additional supporting businesses to the state.