BOX ELDER COUNTY – Canadian billionaire Kevin O’Leary has responded to what he called an “outrageous” request from Utah Senate President Stuart Adams (R-Woods Cross) to reduce the size of the so-called Stratos Project here by 75 percent.
While promising not to walk away from the controversial development in the remote Hansel Valley area of Box Elder County, O’Leary emphasized that the possibility of cutting the project by three-quarters was never considered in the original deal he made with state officials, including Adams.
The celebrity investor said that he considered Adams to be “a partner” in the Stratos Project until he received a letter from Adams on June 1 proposing that the development be trimmed and demanding other concessions.
Adams heads Utah’s Military Installation Development Authority (MIDA), a quasi-governmental state entity that promotes economic development and military initiatives.
In the case of the Stratos Project, MIDA officials had already negotiated the terms of an interlocal agreement for the proposed data center with O’Leary Digital over a period of months.
Under relentless public pressure since news of the proposed data center came to light in early May, Adams suddenly reversed course in a letter to O’Leary.
In a prepared public statement of June 1, Adams acknowledged calling for a reduction in the project area from 40,000 acres – about 62 square miles – to 10,000 acres.
That correspondence also demanded that any excess ground water be diverted to the Great Salt Lake; greater transparency; stronger conservation commitments; and enhanced protections for Utah’s natural resources.
In social media posts and interviews with reporters since receiving the letter, O’Leary said that many of Adams’ demands are typical attempts to deflect political heat that his firm would undoubtedly have agreed to as the state review process for the Stratos Project unfolded.
But the Canadian investor called the requested 75 percent reduction in the project’s land area a potential deal-breaker.
In the month since the first news of data center proposal became known, statewide opposition has grown steadily, sparked by concerns over air quality, environmental issues and the project’s potential impact on the already shrinking Great Salt Lake.
In a statement released on June 1, Adams said he now shares the natural concerns of his constituents about the proposed data center and hopes that O’Leary responds positively.
Adams’ letter was released just three weeks prior to a statewide primary election on June 23, where the Senate president faces several Republican challengers.
In a more considered response to Adams’ letter, O’Leary said that his development team is now engaged in brainstorming a way to reduce public opposition by building a smaller-scale data center as a technological proving ground for future projects.
In his letter, Adams said that Utah has already taken significant steps to strengthen state oversight of large-scale developments like the Stratos Project.
Those steps include increasing transparency regarding water use; investing in water conservation and infrastructure; and ensuring that energy costs are paid by project developers, not Utah ratepayers.