News

Actions

Utah's Box Elder County Commission votes to allow controversial data center, despite massive outcry

Box Elder County Commission votes to allow controversial data center, despite massive outcry
Posted

TREMONTON, Utah — The Box Elder County Commission has voted unanimously to allow a massive data center project to move forward.

The commission held a "special" meeting Monday afternoon to decide if they'll approve the construction of a massive data center, a proposal that has garnered widespread opposition in their county and across the state.

All three commissioners voted in favor of resolution 26-12, which allows an "interlocal agreement" between Box Elder County and the Military Installation Development Authority. Commissioner Lee Perry said this provides "guardrails" to protect local residents.

The second, resolution 26-11, gives MIDA consent to move ahead with the project, which is expected to take 10 years.

WATCH: County commissioners, MIDA and O'Leary representatives

FULL VIDEO: Box Elder Co. Commissioners share reasons behind data center approval

BACKGROUND

The "Stratos Project" is a proposed data center with a 40,000-acre campus in an unincorporated area in western Box Elder County. The Salt Lake Tribune reports that the head developer is O'Leary Digital, owned by Shark Tank personality Kevin O'Leary, aka "Mr. Wonderful."

The project was approved by the Military Installation Development Authority (MIDA).

The Box Elder County Commission, made up of three elected commissioners, was supposed to vote on the proposal last Monday. However, they delayed the vote after hearing concerns about water usage, electricity, and fears that the proposal was being rushed toward a final decision.

A spokesperson for MIDA said they plan on using on-site energy and a closed-loop water system, with 3,000 acre-feet of on-site water that they claim is not from the Great Salt Lake.

“There’s misunderstanding on what constitutes Great Salt Lake," countered Rob Dubuc, who serves as counsel for Friends of the Great Salt Lake. "A groundwater aquifer that feeds into the lake is absolutely critical to the lake. You can’t have it all; choices have to be made. Are we going to save the lake or not? It takes every drop."

WATCH: Critics warn of water, power drain for proposed massive data center in Box Elder County

Critics warn of water, power drain for proposed massive data center in Box Elder County

The planners also say they will power the center with on-site-produced energy via natural gas.

Monday's meeting was moved to the county fairgrounds in Tremonton due to the expected turnout. Immediately when the meeting started, the commissioners were met with a massive eruption of shouting and booing.

Once the crowd died down, Commissioner Tyler Vincent began reading a statement about the project. One of the first things he said was that this process is far from over.

However, as he read off alleged positive aspects of the project, he was met with more outbursts. A manager of the Bear River Water Conservancy was also boo-ed after saying his agency had reviewed the water rights change application and said the community does not rely on the Salt Wells water in the Hansel Valley area. An outside attorney hired by the county also spoke about the economic incentives of the project and was met with jeers.

After about 30 minutes, the three commissioners walked out after the crowd would not stop shouting and chanting. A feed of the commissioners in a separate room was later seen on a projector screen and continued in a virtual meeting, where they ultimately cast their votes.

In a press conference following the meeting, O’Leary Digital spokesperson Casey Hill said that with the approval given, they will begin with a "capital raising effort" over the next 60 days to support the billion-dollar project.

He says the first phase of the project will begin within a matter of months, adding that they intend to be out in the community helping them to understand what the development proposes.

But it won’t move along without further opposition.

A water right change application has been filed by Bar H Ranch, a private landowner in the Hansel Valley area. The application would change the use of 1,900 acre-feet from agricultural to industrial, for the data center’s use specifically.

The application is currently in a protest period through Tuesday, May 5. As of Monday night, it’s received more than 1,800 protests and letters of concern.

Once the protest period ends, Utah’s Division of Water Rights will have to set a hearing date for the application.