Developers of mega data center promise environmental considerations, community benefit

May 3, 2026

TREMONTON — As Box Elder County commissioners are expected to vote on approval of a massive data center in the western part of their county, the developers behind the project are promising to take measures to protect the environment and serve as a benefit to the surrounding communities.

CEO and co-founder of O’Leary Digital, Paul Palandjian, told KSL that the power plant, which would produce up to nearly 9 gigawatts of electricity, will produce only 5% of the carbon emissions of similar plants, while seeking a production method that doesn’t require water. Palandjian said Kevin O’Leary, who gained fame on ABC’s “Shark Tank” as one of the shark investors, is dedicated to being environmentally conscious.

“(O’Leary) was an environmental studies major, and he cares deeply about these issues that are being raised,” Palandjian said. “The counter-narrative that is being put forth by so-called ‘environmentalists’ relies on false information and facts, and ironically, it is using AI to generate video and print campaigns against the project.”

Unrest toward the project is very active in some groups on social media. Palandjian believes much of the more aggressive opposition is coming from groups outside of Utah.

“These protesters are anything but good stewards of the environment. They are paid thugs who are creating a dangerous human safety issue as county leadership, landowners and citizens of the county are facing death threats, harassment and bullying. It is unethical and wrong,” Palandjian said.

Paul Palandjian, chief executive officer and co-founder of O’Leary Digital, spoke with KSL about a proposed data center and the company’s commitment to the environment and community. (Photo: O’Leary Digital)

Many people online are sharing concerns over water use. Palandjian, however, said that their data center will use a modern closed-loop cooling system. While the mixture of water and glycol will have to be refilled at times, he said it will still use significantly less water than what would be consumed from agriculture on the same plots of land, just north of Spring Bay, and Locomotive Springs. He also said no contaminants will be released into the environment.

“There’s another myth that these (data centers) are just big, ugly, monolithic eyesores,” he added. “One of our core values is to create something that’s aesthetically pleasing (and) that uses clean and sustainable materials.”

Despite the promises for environmental stewardship, some scientists are still very skeptical of the actual outcome.

The data center, dubbed Project Stratos, is part of an effort to provide more AI and cloud-computing infrastructure for the military, as the country falls far behind in that race with China.

“This is a serious issue of national security, and all we’re trying to do is be a part of the solution that protects and advances America,” Palandjian said.

The data center is expected to generate some 2,000 jobs at Phase 1, with the potential to triple that at full capacity. Palandjian said O’Leary Digital is working out plans to offer AI-literacy courses for area schools, and help with undergraduate and graduate programs associated with professions attached to data centers.

Still, anything that spans 40,000 acres is bound to garner some opposition. Palandjian hopes that their efforts will help build some bridges.

“You need to understand that we hold the American farmer and rancher as sacred,” Palandjian explaind. “We’re also already master planning (the project) to preserve hunting sanctuaries. We’ve got leaseback agreements with ranchers for continued grazing operations.”

Box Elder County commissioners are expected to vote on approval of the project in a special meeting Monday at 4 p.m. The meeting will be held at the Box Elder County Fairgrounds, to accommodate the anticipated large crowds.

A county spokesperson would not confirm or deny reports of threats on county officials, but said in a statement, “As the county prepares for Monday’s meeting, we are implementing all necessary precautions to ensure a safe, respectful, and civil meeting for all participants who attend.”

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