Amid backlash, O'Leary Digital CEO defends Box Elder County data center project

O’Leary Digital CEO Paul Palandjian defended the company’s proposed data center project in Box Elder County, Utah, after facing criticism over its potential environmental impacts. The Stratos Project Area, spanning 40,000 acres, includes a data center complex and 7.5–9 gigawatts of power capacity, partially fueled by natural gas. Palandjian acknowledged calls for further study, stating that regulatory oversight from multiple government bodies would ensure accountability. He also emphasized that all landowners in the project zone have signed letters of support, including ranchers and farmers. The project, spearheaded by businessman Kevin O’Leary, has drawn opposition from environmental groups and local residents concerned about water depletion and rising temperatures near the Great Salt Lake. Palandjian addressed these concerns in written responses to KSL, highlighting the project’s alignment with national defense priorities. The U.S. Department of Defense, intelligence agencies, and federal research programs rely on secure, large-scale computing infrastructure, and the Stratos initiative directly responds to a request from a top U.S. Air Force official for such a facility. The project’s location near Hill Air Force Base, Northrop Grumman’s Promontory facilities, and the Utah Test and Training Range strengthens its defense-related justification. O’Leary Digital has launched a website, boxelderstratos.com, to outline the project’s details and address public concerns. Despite opposition, the Military Installation Development Authority approved development guidelines and tax incentives in April, while Box Elder County commissioners passed resolutions supporting the initiative in May. Critics argue the project could strain Utah’s limited water supplies and harm the Great Salt Lake ecosystem. Palandjian dismissed threats against company leaders and officials but reiterated that peaceful protest remains acceptable. The debate continues as environmental reviews and regulatory processes advance, with stakeholders weighing economic development against ecological preservation.