3 things to know about Utah's massive proposed data center
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A proposed data center in northern Utah would generate and consume more than twice the electricity now used by the entire state if local officials approve it this week.
Why it matters: Supporters say the "hyperscale" data center would create 2,000 jobs and help keep the U.S. competitive in the fast-moving field of AI.
- Critics say it could be environmentally catastrophic, using water amid drought and burning fossil fuels to supply the facility's enormous electricity needs.
Driving the news: Box Elder County commissioners are scheduled to vote Monday on the proposal by investor Kevin O' Leary, of "Shark Tank" fame.
- The project, which the state is calling "Stratos" would occupy about 60 square miles.
Catch up quick: County commissioners there had planned to vote on the proposal last Monday, but delayed the decision after one member complained, "We were brought in at the last hour and then expected to just run with this."
- Meanwhile, many residents say they haven't had a reasonable chance to address their concerns.
Here's what to know:
1. State officials are pushing the project hard and fast
The proposal is being advanced by Utah's Military Installation Development Authority (MIDA) — a state office that coordinates development involving military-owned land, including hotels, office space and Deer Valley's new ski village.
Follow the money: To "lure" O'Leary, MIDA on April 24 approved a massive energy tax cut for Stratos, charging 0.5%, versus the 6% it's authorized to collect.
- "It's a competition," MIDA head Paul Morris told the board.
That's also "why we've been rushing it so fast," he said.
- MIDA is seeking Box Elder's approval before environmental or traffic studies are complete.
2. Natural gas will power the data center
Morris told county officials on April 22 that "100% of the power will be generated" from natural gas.
- Full capacity is expected to eventually reach 9 gigawatts. Utah's annual average consumption is 4 gigawatts, Morris later said, arguing a backup power supply would benefit the state.
Friction point: "Nine gigawatts of power of natural gas will raise Utah's current total greenhouse gas production by about 50%," USU physicist Robert Davies told KSL.
- Those emissions are unlikely to stay in Box Elder County, the Salt Lake Tribune reported.
The fine print: Both Gov. Spencer Cox and MIDA have promised that the facility will have to follow state and federal environmental laws.
Yes, but: Those laws don't ban pollution. Instead, "major" polluters apply for permits and may have to pay for pollution-reduction measures.
- Critics say those payments frequently fail to make up for the excess pollution.
3. Scientists dispute promise to help the Great Salt Lake
Despite data centers' reputation for water-hogging, Morris told county commissioners that Stratos' "water usage is minimal."
- Austin Pritchett, a Utah real estate investor who is partnering with O'Leary, said last week that the facility will "clean" and re-circulate briny spring water in a closed-loop system, and return it to an aquifer that feeds the Great Salt Lake.
Reality check: The facility's heat has to go somewhere, Davies said. If it goes into the air, the temperature shift would be enough to change weather patterns, USU climate scientist Wei Zhang told KSL.
- If it goes into the water, the "thermal load" could devastate the lake's ecosystem, Davies said.