Utah tightens rules for Kevin O'Leary's AI data center after backlash

May 31, 2026 - 02:43

A local commission in Utah has moved to impose stricter conditions on a massive artificial intelligence data center project backed by investor Kevin O'Leary, just weeks after the initial approval sparked widespread backlash from residents and environmental groups. The original plan, which cleared the board in a contentious vote, called for a hyperscale campus sprawling across 40,000 acres in the state's west desert. Critics argued the development would drain scarce water resources, strain the power grid, and industrialize a fragile ecosystem.

In response to the uproar, the commission voted again this week to add new requirements. The updated rules mandate that the project use recycled water for cooling, secure renewable energy contracts before breaking ground, and fund a long-term environmental monitoring program. Commissioners acknowledged the economic potential of the data center but said the public's concerns could not be ignored.

O'Leary, known for his role on the television show "Shark Tank," has promoted the facility as a hub for next-generation AI computing. However, local activists remain skeptical. They argue the new rules still lack teeth and worry about enforcement. The project now faces additional permitting hurdles, and construction is not expected to begin until late next year at the earliest.