O'Leary Secures Approval for 9GW Utah Data Center Campus
Key Takeaways
- 1Utah approves 9GW hyperscale data center by O'Leary Digital.
- 2Off-grid power generation aims to attract AI cloud operators.
- 3Project enhances local job market and reduces energy tax burden.
Utah's Military Installation Development Authority (MIDA) has approved a significant development agreement for a hyperscale data center campus in Box Elder County called Stratos, backed by Kevin O'Leary's O'Leary Digital. This project is set to generate and utilize up to 9 gigawatts (GW) of power, more than double the state's average electricity consumption of approximately 4 GW. The first phase will involve about 3 GW of onsite power generation through a direct connection to the Ruby Pipeline, while the entire complex will span 40,000 acres including military and state-owned land, ensuring it operates off-grid and not reliant on the traditional power grid.
The implications of this development are noteworthy, as it signifies a strategic move to bolster local infrastructure in direct response to China's rapid growth in AI data centers. O'Leary's statements highlighted the urgency of this project amid a global competition for AI infrastructure, indicating that the site could provide substantial revenue for Box Elder County while creating around 2,000 permanent jobs. With tax incentives in place, including a reduction in energy use tax and property tax rebates, this initiative appears poised to enhance national AI capabilities and contribute to economic growth without increasing dependency on external power supplies.