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The shiny AI future meets a very grumpy backyard
Kevin O’Leary is trying to sell Utah on a mega data center project that sounds like it was dreamed up by someone who thinks “bigger” is always better: 40,000 acres, up to 9 gigawatts of power, and a whole lot of AI infrastructure. The catch? People nearby are staring at the water use, emissions, and ecological strain and reacting the way most of us would if someone proposed a small industrial city in our county: hard pass.
O’Leary says he did his homework
In a video posted on X on May 5th, O’Leary said sustainability is central to the project and argued he’s actually studied the environmental side of data centers — because nothing says credibility like saying you’re the only developer on earth with an environmental studies degree. He pointed to alternative cooling systems, better batteries, and renewable options, while calling some of the backlash overblown and, in some cases, AI-generated. Subtle? Not exactly.
Why investors should care
This isn’t just a Utah problem. It’s a reminder that the AI boom runs on very unsexy things: land, power, water, permits, and local politics. And when those things get tight, timelines slip, costs rise, and the grand AI rollout starts looking less like a rocket ship and more like a zoning hearing.
The article also ties the debate to the broader hyperscaler spending spree. Alphabet, Amazon, Meta, Microsoft, and Oracle have collectively poured hundreds of billions into capex, which is great until the grid, the regulators, and the neighbors all show up with questions. Big picture: AI demand is still real, but the infrastructure buildout may be slowing down in the most human way possible — by running straight into the people who live there.