Kevin O’Leary’s Utah data center plan hit with lawsuit over unelected board’s ‘permanent, irrevocable control’

Kevin O’Leary’s massive Utah data center proposal is facing a new challenge after a nonprofit and five Utah residents sued over how the project was approved.

According to NBC News, the complaint argues that an unelected body was given broad authority over local land use, taxation, and public health decisions without providing residents a meaningful voice.

The Alliance for a Better Utah and five anonymous Utah residents filed the case Wednesday in Utah’s 3rd District Court, challenging both MIDA’s constitutionality and its role in advancing O’Leary’s planned Stratos Project.

The lawsuit centers on a proposal that originally called for a 40,000-acre AI data center campus in Utah’s Hansel Valley.

The plaintiffs say MIDA, a special entity overseeing the project, has been allowed to wield powers that should belong to elected local government.

Attorney David Irvine, who represents the plaintiffs, said MIDA would have “permanent, irrevocable control over public health, safety, taxation, and land use” across a large portion of the county “with no voter recourse.”

The suit also names Adams and Stevenson, who serve on MIDA’s board.

MIDA said it is reviewing the lawsuit, while Box Elder County said it had not yet been formally served.

Adams’ office also said it is reviewing the filing.

The plaintiffs argue that Box Elder County citizens are being shut out of decisions that could shape zoning, taxes, public health, and safety for decades.

Large data centers can put enormous demands on land, energy, and water resources.

In a dry state like Utah, those concerns carry particular weight for families, farmers, and nearby communities already worried about water security and environmental strain.

The lawsuit asks the court to find MIDA’s actions and the county commission’s related approvals unconstitutional.

It also seeks to block any further implementation of the Stratos Project Area Plan.

The project itself is already being reworked. After mounting political pressure, Adams asked O’Leary to reduce the data center’s size by 75%.

O’Leary said Wednesday he was “going to have to” scale back the project, and Adams later announced that O’Leary had agreed to the reduction, along with commitments to send water to the Great Salt Lake and preserve land for open space, wildlife protections, and agriculture.

Adams also said the project is still in its early stages and will undergo full permitting and environmental review.

“Backroom deals and pay-to-play have no place in Utah government, and Box Elder County residents deserve a voice in what happens to their community,” Irvine said, per NBC News.

Adams, meanwhile, said, “The response to the demand letter I sent demonstrates that public engagement matters and that Utahns’ concerns are being heard.”

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