A lawsuit has been filed against the controversial Stratos AI datacenter project in Utah, backed by celebrity investor Kevin O'Leary, with residents and a progressive nonprofit claiming the facility would permanently strip citizens of their rights by limiting public participation.
Legal Action Against the Project
Filed by the Alliance for a Better Utah and five unnamed residents from Box Elder County, the lawsuit challenges the constitutionality of the state's Military Installation Development Authority (MIDA) and its approval of the project. The plaintiffs argue that MIDA, a special entity overseeing the proposal, has granted itself permanent control over public health, safety, taxation, and land use across tens of thousands of acres, with no voter recourse. Attorney David Irvine stated, "Under the Stratos plan, it would hold permanent, irrevocable control over public health, safety, taxation and land use across tens of thousands of acres of Box Elder county, with no voter recourse."
Project Reductions and Responses
Initial plans for the datacenter envisioned a 40,000-acre campus in Utah's Hansel Valley, but O'Leary acknowledged the need to downsize. Utah State Senate President Stuart Adams confirmed O'Leary agreed to reduce the footprint, commit water to the Great Salt Lake, and set aside thousands of acres for open space and wildlife protections. Adams noted the project is in its earliest stages, with full permitting and environmental reviews pending. O'Leary posted on X that he is not walking away but understands the concerns, adding that a 75% reduction is not realistic for such a scale. He accused opponents of spreading misinformation and claimed allegations of draining the Great Salt Lake or causing massive environmental damage are unfounded. O'Leary also highlighted job creation and billions in investment, while investigating foreign influence in opposition groups, citing potential links to Chinese-backed interests. This follows calls from four congressional Republicans, including Brett Guthrie, for FBI information on foreign influence campaigns slowing American AI progress.
