Utah's governor is all for new AI data centers — under certain conditions.
After a massive data center project backed by "Shark Tank" investor Kevin O'Leary outraged many Utah residents, the governor is issuing new parameters around its development.
In an executive order on Friday, Gov. Spencer Cox established a "higher bar for data center development in Utah."
"Utahns deserve confidence that water resources, air quality, utility rates, wildlife, and quality of life will be protected. This framework helps ensure that data center development aligns with Utah's long-term interests and reflects Utah values," Cox wrote in an X post.
The framework contains eight principles that address a range of issues, including protecting water resources such as the Great Salt Lake and mitigating the impact on wildlife. Protecting utility rate payers, leaning into "human-led AI development," and providing "transparent, meaningful and thorough opportunities for public comment" were also among the outlined principles.
The executive order, which directs agencies to adopt the framework, is effective immediately.
Today I signed an Executive Order establishing a higher bar for data center development in Utah.
Utahns deserve confidence that water resources, air quality, utility rates, wildlife, and quality of life will be protected. This framework helps ensure that data center development… pic.twitter.com/yrASJOVvJi
Tensions in Utah have been high for months, particularly in Utah's Box Elder County, where commissioners approved plans for the Stratos Project, a hyperscale data center campus spanning 40,000 acres, despite community opposition. The development, also dubbed "Wonder Valley" after O'Leary, who calls himself "Mr. Wonderful," could reach 9 gigawatts of power when all is said and done.
Many residents have fiercely opposed the development, crowding local council meetings and circulating petitions. Recently, some critics protested the data center outside the Utah State Capitol.
While supporters say the data center will create jobs and spur economic growth, opponents are concerned about its environmental impact, noise levels, air quality, traffic, and the overall quality of life for nearby residents.
O'Leary has defended the development several times. Earlier this month, he suggested — without evidence — that "professional protesters" orchestrated much of the controversy, that AI amplified some opinions, and that Chinese funding was fanning the outrage.
A webpage for the Stratos Project said residents submitted over 2,000 questions and concerns that included "a mix of supportive and critical feedback."
In a May X post, Cox said the developers behind the Stratos Project agreed to use a phased approach to development, meaning they'll need to apply for new permits for every planned addition.
Data centers are becoming a major political issue ahead of November's midterms. Communities across the country are rallying against them, pressuring local politicians. In February, residents in a New Jersey city, for instance, successfully blocked a data center development.
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Lauren Edmonds is an award-winning reporter on the Business News team. When news isn't breaking, she covers personal finance, kitchen-table economics, and paths to financial freedom, including investing, real estate, side hustles, and small business. She also writes about guaranteed and universal basic income programs in the United States.Lauren has also covered lifestyle and entertainment, digital culture, and more. She has a master's degree from the Columbia University Graduate School of Journalism and resides in New York City.Do you have an interesting story to tell? You can reach Lauren at [email protected] or on Signal at ledmonds0.07.Popular StoriesNetflix wants to be Disney when it grows up Why Hollywood is paying this 17-year-old up to $20,000 to boost film trailers with TikTok editsHere's all the free money Trump's talked about giving Americans during his second term — and where it all standsA 17-year-old earned $72,000 after investing his e-commerce profits into stocks. Here's why he bet on the tech industry.Lawmakers float a nationwide basic income experiment that would cover the cost of a 2-bedroom apartmentNearly 30,000 Americans have received about $335 million in basic income. Here are 5 takeaways. Americans ditch suffocating healthcare costs and divisive politics to retire in Italy: 'It's the way they approach life'From 'road-schooling' to gas that costs $500, this family of 4 shares what it's like living in a solar-powered Greyhound bus
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