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“Shark Tank” investor Kevin O’Leary says he is prepared to shrink a sprawling artificial intelligence data center development in Utah after top state lawmakers pushed for major reductions and additional environmental safeguards, according to reports.
O’Leary told NBC News on Wednesday that he is willing to reduce the size of the proposed Stratos data center project after Utah Senate President J. Stuart Adams called for a 75% reduction in its footprint.
“I have no choice,” O’Leary told NBC News at the Washington AI Network’s AI Honors gala.
The project, which has been promoted as one of the largest AI-focused data center developments in the world, would span roughly 40,000 acres in Box Elder County.
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In a letter sent Monday, Adams urged O’Leary to reduce the project area to approximately 10,000 acres and adopt additional environmental safeguards before moving forward.
“I’ve sent a letter directly to Kevin O’Leary calling for a 75% reduction in the proposed data center project area, from 40,000 acres to approximately 10,000 acres,” Adams said in a statement.
The Republican Senate president also called for stronger conservation measures, greater public transparency and protections for Utah’s natural resources.
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Among his requests, Adams said the project should commit to using the latest technology to minimize water consumption, dedicate any excess treated water to the Great Salt Lake and enter into agreements with state officials to preserve wildlife habitat and agricultural land.
“Utah can pursue economic opportunity while protecting our water, air, wildlife and communities,” Adams said. “We can and must do both.”
O’Leary suggested the demand was driven in part by political pressure as opposition to the project continues to grow.
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“I know he did it for political reasons,” O’Leary told NBC News. “He has to address those issues, and so do I.”
Residents and environmental advocates have raised concerns about the project’s potential demands on water supplies, power infrastructure and nearby communities.
O’Leary has previously dismissed some of those concerns as misinformation and accused opponents of spreading false claims about the project.
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“All these people have a right to get information,” O’Leary told NBC News. “Why are they getting it from a false initiative? Who is spending all this money to put out all these falsehoods and straight-out misinformation and lies and agitate these people?”
Adams noted that several legislative committees are examining how large-scale developments could affect Utah’s water supply, energy system, land use and environmental resources.
Utah has also invested more than $1 billion in water conservation and infrastructure projects while increasing oversight of large-scale developments, Adams said.
O’Leary told NBC News he plans to formally respond to Adams by Friday with details of a revised proposal.
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