‘Shark Tank’ Investor Kevin O’Leary Says Ready to Shrink a Sprawling Artificial Intelligence Data Center development in Utah after top state lawmakers pushed for deep cuts and additional environmental safeguards, according to reports.
O’Leary told NBC News on Wednesday that he was willing to reduce the size of the proposed Stratos data center project after Utah Senate President J. Stuart Adams called for a 75% reduction in its footprint.
“I have no choice,” O’Leary told NBC News at the Washington AI Network’s AI Honors gala.
The project, which was presented as one of the largest AI-driven data center developments in the world, would span approximately 40,000 acres in Box Elder County.
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Kevin O’Leary, President of O’Leary Ventures, arrives to speak before a joint hearing of the Senate Committee on Aging and the House Select Committee on the Chinese Communist Party, April 9, 2025, in Washington, DC. (Andrew Harnik/Getty Images/Getty Images)
In a letter sent Monday, Adams urged O’Leary to reduce the size of the project to about 10,000 acres and adopt additional environmental protections before moving forward.
“I sent a letter directly to Kevin O’Leary calling for a 75 percent reduction in the proposed acreage for the data center project, from 40,000 acres to approximately 10,000 acres,” Adams said in a statement.
The Republican Senate president also called for stronger conservation measures, greater public transparency and protection of Utah’s natural resources.
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Kevin O’Leary, President of O’Leary Ventures, speaks before a joint hearing of the Senate Committee on Aging and the House Select Committee on the Chinese Communist Party, April 9, 2025. (Photo by Andrew Harnik/Getty Images/Getty Images)
Among his demands, Adams said the project should commit to using the latest technology to minimize water consumption, dedicate any excess treated water to the Great Salt Lake, and enter into agreements with state officials to preserve wildlife habitat and agricultural land.
“Utah can seize economic opportunities while protecting our water, air, wildlife and communities,” Adams said. “We can and must do both.”
O’Leary suggested the request was partly driven by political pressure as opposition to the project continues to grow.
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High-tech data center with server racks (iStock/iStock)
“I know he did it for political reasons,” O’Leary told NBC News. “He has to solve these problems, and so do I.”
Residents and environmental advocates have expressed concerns about the project’s potential demands on water supplies, electrical infrastructure and neighboring communities.
O’Leary has previously dismissed some of these concerns as misinformation and accused opponents of spreading false claims about the project.
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“All of these people have a right to information,” O’Leary told NBC News. “Why are they getting this from a fake initiative? Who is spending all this money to spread all these lies and fake news and falsehoods and agitate these people?”
Adams noted that several legislative committees are examining how large-scale developments could affect Utah’s water supply, energy system, land use and environmental resources.
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Utah has also invested more than $1 billion in water conservation and infrastructure projects while increasing oversight of large-scale developments, Adams said.
O’Leary told NBC News he plans to formally respond to Adams by Friday with details of a revised proposal.
