Celebrity investor Kevin O’Leary’s plan to build one of the world’s largest AI data centres in Utah has stalled following fierce local opposition and legal challenges.
According to The Verge the Stratos project, which O’Leary promoted under the name Wonder Valley, originally envisaged a 40,000-acre development in Box Elder County. Its proposed nine-gigawatt power requirement would exceed twice Utah’s average electricity consumption, making it one of the most ambitious infrastructure projects associated with the AI boom.
According to an investigation by The Verge, the development has become embroiled in legal disputes, local political upheaval and questions about how the scheme received its initial approvals. O’Leary announced the project in April 2026, apparently before most residents and local officials knew what was being planned.
The development had received backing from Utah’s Military Installation Development Authority (MIDA), a state agency with extensive powers to approve projects and override certain local planning restrictions. MIDA was established to support development tied to military installations, but its remit has expanded to include projects with less direct ties to military operations.
The agency’s involvement offered a potential shortcut through the planning and approval process, something developers of enormous AI facilities would naturally find attractive. However, The Verge’s investigation found that Box Elder County officials received little warning about the project, even though their approval was required.
Residents later discovered that a development larger than Manhattan was being planned in their county, with major implications for electricity generation, water supplies, and the surrounding environment. The project included plans for a massive natural gas power installation to supply the proposed data centre campus.
Environmental concerns were particularly sensitive because of the development’s proximity to the shrinking Great Salt Lake. Developers maintained that their water management arrangements would protect local resources, but residents questioned those assurances.
Opposition quickly brought together environmental campaigners, conservative residents and people concerned about the lack of public consultation. O’Leary hardly improved matters by accusing some opponents of working for China during an appearance on Fox News.
The allegations lacked supporting evidence and later prompted apologies from both O’Leary and the broadcaster. They have become the subject of a defamation lawsuit. Meanwhile, the project’s political consequences have extended beyond the development itself.
Several officials associated with its approval lost their positions in Republican primary contests, including Utah Senate president J. Stuart Adams, who chaired MIDA. The development was subsequently scaled back, with O’Leary agreeing to remove approximately 20,000 acres from the original proposal.
That still leaves a site considerably larger than Manhattan, assuming the remaining development proceeds. Local campaigners have attempted to force a referendum challenging the county’s consent for the project. County officials rejected the referendum application, prompting litigation that remains unresolved.
The Verge reports that the project has lost much of its initial momentum, although it has not been formally abandoned. O’Leary has retreated from his earlier prominent public role, and his lawyers have responded to questions from the publication.
The difficulties illustrate a growing problem for companies attempting to construct AI infrastructure at unprecedented scale. Data centre developers are competing to secure enormous quantities of electricity, land and computing capacity as hyperscalers expand their AI operations. Power generation equipment, grid connections and construction schedules have already become significant obstacles.
The prospect of building facilities requiring several gigawatts of electricity has encouraged developers to pursue their own power generation arrangements and seek faster planning approvals.
However, local opposition can introduce delays that spending more cash cannot necessarily resolve. The Stratos project’s future now depends partly on the outcome of the legal proceedings and whether its developers can establish a workable agreement with local authorities.
