Data Center Backlash Grows as Utah Approves Massive O'Leary-Backed Project Amid Local Opposition

The Box Elder County Commission in Tremonton, Utah, faced heated opposition during a meeting where locals decried a massive new data center project backed by billionaire Kevin O'Leary. A video posted by progressive group More Perfect Union captured an attendee shouting at the commissioners, declaring, "It's false. This is not real information."

Despite chants of "shame, shame, shame" from the crowd, the three commissioners approved Project Stratos, a 40,000-acre data center that would be 2.5 times the size of Manhattan. The project, which will provide data services to the military, was greenlit despite opposition from hundreds of locals.

Commissioner Tyler Vincent defended the decision, stating, "We need to realize and remember that everybody has property rights, and that they can do what they would like to do with their property." The approval comes amid a broader national backlash against data centers, fueled by local officials abandoning property rights in response to public pressure.

Record-Breaking Data Center Cancellations in Early 2026

A new analysis by Heatmap News found that 20 proposed data center projects were canceled in the first three months of 2026—a figure that doubles the previous quarterly record set in late 2025. The surge in cancellations reflects growing resistance to data centers, even as the industry experiences a historic boom.

Data Center Boom Continues Despite Backlash

According to a report by the American Edge Project, there are currently 2,788 data centers in the development pipeline in the U.S., representing a 67% increase in the country's total data center capacity. The expansion is driven by surging demand for cloud computing, artificial intelligence, and other digital services.

While more projects are being proposed and built, the backlash highlights concerns over "not in my backyard" (NIMBY) sentiment and generalized techphobia. Critics argue that data centers are low-impact facilities with minimal emissions, noise, and traffic impacts. Their water usage is comparable to that of an office building, and their electricity demand, while substantial, has not been shown to significantly increase consumer energy costs.

A recent report by the Congressional Research Service (CRS) noted that data centers could both increase and decrease energy prices, depending on infrastructure investments and utility profitability. However, the debate over their impact is intensifying as local opposition grows.