Box Elder County data center plans quietly edging ahead though debate has died down

BRIGHAM CITY — Much of the public debate surrounding the proposed Box Elder County data center has died down as three lawsuits centered on the controversial proposal wind their way through court.

That doesn't mean the project has stalled, according to an official involved in the plans. In fact, officials from O'Leary Digital, the company spearheading the proposal, are fine-tuning project details as varied studies required before project development can proceed are underway.

"The project is not on hold. Some reporting has suggested it is paused and that is not true," said Paul Palandjian. He's the chief executive officer of O'Leary Digital and co-founder of the business along with Kevin O'Leary, the celebrity businessman whose name has most been associated with the proposal.

Project design details face tweaking as behind-the-scenes efforts on additional elements of the plans by regulators and others unfold. Responding to a KSL query about the status of the plans, he didn't offer a specific timeline for project development but said efforts are unfolding.

"We are in pre-development, taking the infrastructure, gas supply and power generation to the next level of design and engineering, along with the other critical elements of the master plan," Palandjian said. "The revised water rights application, prepared by Loughlin Water Associates and our water counsel at Parr Brown, is one we expect to submit to the Division of Water Rights this week."

The Stratos Project Area, as it's known, calls for development of a data center in the Hansel Valley, an expansive, undeveloped area of Box Elder County. The plans also call for natural gas-fired power-generating capacity to serve the operation, which would tap underground water supplies to help it meet its water needs.

Palandjian said engineering, environmental and economic impact studies are underway, following guidelines set by the state of Utah and Utah's Military Installation Development Authority, or MIDA, a public entity partnering with O'Leary Digital in the initiative. Varied accords with Box Elder County and MIDA officials have already been approved "in substantial form," and efforts under the framework reached with MIDA continue.

The plans, which publicly emerged last spring, have sparked consternation among some, worried about the water the development would use and its impact to the environment. Foes unsuccessfully petitioned Box Elder County to put a question on the November ballot letting the public decide whether two resolutions approved by Box Elder County commissioners in May that permit the plans to proceed should stand.

As described by Palandjian, though, the project's "updated planning and engineering" standards have incorporated feedback from Gov. Spencer Cox from last May.

Among other things, the first phase of the power-generation element of the project will be limited to 1.5 gigawatts, though those involved in the project have said the total project power-generating capacity over the long haul could be up to 9 gigawatts. The power-generating mix will broaden beyond natural gas over time.

What's more, the project will use "the most environmentally sensitive cooling technology available," Palandjian said, referencing worries of critics that excessive amounts of water would be required to cool the varied technological elements of the project.

"At full buildout, the project will consume under 900,000 gallons of water a day on average after recycling, and we will report our actual withdrawals publicly every year under Utah's new data center water transparency law so anyone can check what we said against what we used," Palandjian said.

As the three lawsuits related to the project are still unresolved, he didn't comment on them.

The opponents of the project are suing Box Elder County and O'Leary Digital in 1st District Court in Brigham City, seeking reversal of the county's decision halting their efforts to force a ballot question on the county commission decisions related to the Stratos project. The county and O'Leary Digital ask that the case be dismissed.

Foes are also suing MIDA and Box Elder County commissioners in 3rd District Court in Salt Lake City, charging that their actions allowing the project to proceed are unconstitutional and should be nullified, effectively halting the project. The defendants haven't yet responded.

Two Utah organizations are suing O'Leary and Fox News in U.S. District Court in Utah for defamation stemming from the public debate and discussion about the project. O'Leary and Fox seek dismissal of the lawsuit.

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