Kevin O’Leary-backed Stratos AI campus has won unanimous approval from Box Elder County commissioners in Utah on May 4, clearing a major local hurdle for one of the largest proposed AI infrastructure developments in the US. The project is being advanced through the infrastructure arm of O’Leary Ventures and covers more than 40,000 acres. The vote, however, came in the face of loud opposition from hundreds of residents, some of whom shouted “Shame!” as the decision was announced.
At full buildout, Stratos is designed to reach as much as 9 gigawatts of generation capacity, with phase one targeting about 3 gigawatts. O’Leary said the campus would be powered entirely through an on-site connection to the Ruby Pipeline, a 680-mile natural gas line running across northern Utah, rather than relying on the state’s existing power grid.
China rivalry used as the strategic case
O’Leary has openly framed the campus as part of a broader US response to China’s rapid expansion in AI-linked energy infrastructure. Citing figures reported by local media, he said China added 400 gigawatts of new power capacity over the last 24 months, with much of that serving AI data centers. In his view, the Utah project is meant to deliver compute capacity for US AI companies as well as national defense needs, making it a matter of strategic and security importance.
That national-competition narrative has been paired with substantial local incentives. Utah’s Military Installation Development Authority reduced Stratos’ energy use tax from 6% to 0.5% and agreed to rebate 80% of property tax revenue, highlighting the extent to which public authorities are willing to offer favorable terms to attract large-scale AI infrastructure.
Water, environment, and public process under scrutiny
Even with approval secured, the project remains controversial. Critics have raised concerns about future water consumption, power intensity, and environmental risks near the already-stressed Great Salt Lake. Some opponents have also questioned whether residents were given enough time to review the proposal and voice objections before the county vote.
In response, O’Leary said the facility would use a closed-loop water recycling system and air-liquid cooling to reduce resource pressure. No hyperscale tenant has been publicly identified so far. Under the current timeline, initial delivery is expected in Q4 2026, while full development is projected to unfold in multiple phases over roughly 10 years.