Kevin O’Leary agrees to downsize massive Utah data center
40,000 acres down to 20,000. Kevin O'Leary just signaled what's really constraining AI infrastructure: water, not capital.
Why it matters
Data center expansion for AI compute is hitting hard infrastructure limits. O'Leary's Utah project downsizing reveals the real bottleneck: environmental constraints and local opposition are now shaping the speed and scale of AI buildout—not just money or chip availability.
The key facts
7 to knowProject Stratos reduced from 40,000 acres to ~20,000 acres
19,430 acres removed from project scope
Located in/around Locomotive Springs Waterfowl Management Area, Utah
Utah Senate President demanded 75% reduction; O'Leary agreed to 50% reduction
Water consumption identified as key concern driving downsizing
Pressure from residents and environmental activists
June 2026 announcement
Go to the source
The Verge AItheverge.com
Publisher excerpt: Kevin O'Leary agreed to halve the size of his planned 40,000-acre data center in Utah amid mounting pressure from residents and activists, as reported earlier by local affiliate ABC4. The Shark Tank star sent a letter to Utah Senate President J. Stuart Adams on Thursday, saying that he will remove…