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Hyperscale Data Center in Utah: Powering AI and Jobs

A massive **hyperscale data center project** in rural **Box Elder County, Utah**, led by Shark Tank investor Kevin O’Leary through his company O’Leary Digital (also known as the **Stratos Project** or **Wonder Valley**), is nearing final approval. The development, spanning about 40,000 acres of private land plus 1,200 acres of military and state-owned property, aims to host hyperscale data centers for tech giants like Amazon, Microsoft, and Google. It would generate its own power via natural gas from the Ruby Pipeline — starting at around 3 gigawatts in the first phase and scaling to 9 gigawatts at full buildout, exceeding Utah’s current statewide electricity consumption. Proponents highlight benefits including 2,000 permanent high-paying jobs, substantial tax revenue for Box Elder County (potentially $30 million initially, rising above $100 million annually), funding for modernization at Hill Air Force Base, and advanced water recycling technology that cleans and returns water to an aquifer feeding the **Great Salt Lake**, with minimal net usage. To attract the limited pool of hyperscalers, the Military Installation Development Authority (MIDA) has approved aggressive incentives, including slashing the energy use tax from 6% to 0.5%, significant property tax rebates (with 80% initially directed back to the developer), and personal property tax relief on rapidly depreciating equipment. The project still requires final sign-off from the Box Elder County Commission, which rescheduled its vote to Monday morning after commissioners expressed concerns about the rapid timeline and sought more resident input and legal review. O’Leary has praised Utah’s pro-business speed and framed the initiative as critical for U.S. competitiveness against China in AI and data infrastructure.