{"id":274,"date":"2026-06-11T10:40:50","date_gmt":"2026-06-11T10:40:50","guid":{"rendered":"https:\/\/americanindustryreview.com\/?p=274"},"modified":"2026-06-11T10:40:50","modified_gmt":"2026-06-11T10:40:50","slug":"a-data-center-caused-an-uproar-in-utah-congress-is-watching-and-waiting","status":"publish","type":"post","link":"https:\/\/americanindustryreview.com\/?p=274","title":{"rendered":"A data center caused an uproar in Utah. Congress is watching (and waiting)"},"content":{"rendered":"
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ST. GEORGE, Utah \u2014 Residents from a state starving for water have become the face of local struggles against Big Tech, locked in protests against a proposed data center that at one point was set to sprawl thousands of acres larger than its infamous Bryce Canyon.\u00a0<\/p>\n

Read more Top GOP appropriators dominate earmarks in House bills<\/a><\/p>\n

Some are looking for federal guardrails to protect against encroachment on natural resources. But the saga that has unfolded in Utah highlights how far Congress is from legislating on the issue.\u00a0<\/p>\n

So far, lawmakers are mostly leaving it to localities to figure it out.<\/p>\n

Investors in the Stratos Project in Box Elder County say its closed-loop cooling system won\u2019t further exacerbate a drought emergency \u2014 a recurring problem for one of the nation\u2019s driest states \u2014 but residents, activists and some politicians fear that\u2019s wrong.<\/p>\n

While the project has been dramatically scaled back after public outcry, it earned national headlines as protesters went viral. Even before that, lawmakers have been watching as more data centers pop up around the country, pushed by worries of keeping up with China and the promise of new jobs.\u00a0\u00a0<\/p>\n

\u201cIf we want to lead the world on technology while preserving our values \u2026 we will listen to the people who feel like they are being handed the bill for Big Tech\u2019s dystopian future,\u201d Sen. Josh Hawley, R-Mo., recently wrote in a Free Press op-ed. \u201cFamilies are watching the construction trucks roll in and asking the obvious questions. Will my electric bill double? Will my well run dry?\u201d<\/p>\n

Hawley is one of the few Republican senators pushing for congressional action on those concerns, saying that while many decisions should be driven at the local level, federal laws could help ensure more accountability and transparency from data centers.\u00a0\u00a0<\/p>\n

\u201cLocal voters have got to have control over who comes in,\u201d he said Tuesday. \u201cLet\u2019s say that local voters say, \u2018OK, yeah, we\u2019re willing to have the data center.\u2019 Well then, there ought to be federal regulations about that.\u201d<\/p>\n

\u201cI just think that that\u2019s commonsense stuff. Nothing I\u2019ve said here is controversial in the real world. It\u2019s controversial in this building, because there\u2019s so much AI money around this building,\u201d Hawley said.\u00a0<\/p>\n

\u2018This home identifies as a data center\u2019<\/h2>\n

For Utahns, the announcement of the data center was like throwing gasoline on a raging fire.\u00a0<\/p>\n

In May, Gov. Spencer Cox issued a statewide state of emergency due to extreme drought conditions, exacerbated by low snowfalls and rising temperatures. \u201cWe can\u2019t control the weather, but we can control the tap,\u201d Cox said.\u00a0<\/p>\n

Residents in the Beehive State \u2014 which politically leans as crimson as the ruby red cliffs that adorn its southern belt \u2014 are being asked to conserve water.<\/p>\n

\u201cThe governor goes on and tells us to pray for snow and to pray for rain, and that we all need to do everything we can, and in the next breath is partnering with Kevin O\u2019Leary to fast-track this data center under the guise of national security,\u201d said Caroline Gleich, an environmentalist from Park City, referring to the celebrity investor.<\/p>\n

One resident even created yard signs: \u201cThis home identifies as a data center and will use whatever amount of water it wants.\u201d<\/p>\n

Gleich, who ran against GOP Sen. John Curtis as a Democrat in 2024, noted the shrinking of the state\u2019s Great Salt Lake and concerns about leaving \u201cbehind this dry lake bed.\u201d<\/p>\n

\u201cAnd when the wind picks up, it blows toxic dust into the air,\u201d she said.<\/p>\n

Curtis recently toured the lake via boat with Environmental Protection Agency Administrator Lee Zeldin to focus on immediate threats posed to the ecosystem and the area\u2019s watersheds. \u201cThat\u2019s one of the reasons that Great Salt Lake\u2019s in trouble,\u201d Curtis said of the state\u2019s water crisis.\u00a0<\/p>\n

But he called the data center \u201ca local issue.\u201d<\/p>\n

\u201cI have almost no data on the water usage. I\u2019ve heard it\u2019s closed-loop, but I don\u2019t know that. I don\u2019t know anything about the water rights. I just don\u2019t have enough information,\u201d Curtis said when asked last week.<\/p>\n

Data centers require water for direct onsite cooling, though how much can vary depending on the local climate and the type of technology used, like closed-loop that is planned for Stratos. As centers have rapidly expanded across the country, so have worries that other water users may face driven-up rates and deteriorating quality.<\/p>\n

On Wednesday, Zeldin said it would be hard for the EPA or federal government to set nationwide standards.<\/p>\n

\u201cYou can\u2019t, across the board, act as if every data center project is equal,\u201d Zeldin said at the Politico Energy Summit. \u201cI\u2019m not going to sit inside of an agency building in Washington, D.C., and say that we know that local community in Georgia or Florida or Arizona or elsewhere, better than everyone there locally.\u201d<\/p>\n

While developers say Stratos wouldn\u2019t rely on Utah\u2019s existing electric grid \u2014 it was once proposed to use more than double the electricity currently consumed by the entire state \u2014 they seek to build the center its own power plant, likely using gas from the Ruby Pipeline that crosses the region. This could still require massive amounts of water; the developers were originally seeking 13,000 acre-feet of rights to groundwater in Utah.<\/p>\n

Despite the water concerns, the data center was greenlit and full-steam ahead until local protests grew too loud for state officials to ignore.\u00a0<\/p>\n

Cox signed an executive order establishing a statewide \u201c\u201d that aims to protect water resources and consumption, saying \u201cthose concerns must be carefully considered.\u201d\u00a0<\/p>\n

Read more Trump continues to hold sway in Republican primaries<\/a><\/p>\n

And Utah\u2019s Senate President J. Stuart Adams \u2014 also chairman for the Utah Military Installation Development Authority, which approved the original Stratos development \u2014 came to an agreement with O\u2019Leary, the television personality and \u201cShark Tank\u201d show investor, after asking him to scale back the project by 75 percent.\u00a0<\/p>\n

The reversal was somewhat unexpected; O\u2019Leary had been, without evidence, likening the protesters to paid foreign agents and called Adams\u2019 ask \u201coutrageous.\u201d But he later told ABC4 TV in Salt Lake City that he and Adams \u201creally screwed this up initially\u201d by not listening to local constituents and \u201cmade huge mistakes. We made some assumptions that were just not right.\u201d<\/p>\n

\u201cWe pissed off a lot of people, and that\u2019s not the way I do business,\u201d he said.<\/p>\n

Federal vs. local action\u00a0<\/h2>\n

Lawmakers in Washington, D.C. have been watching AI-fueled data centers brew debates back home for at least a few years, but legislation is only starting to percolate.<\/p>\n

Among the bills introduced so far, some seek an answer on energy usage questions, saying tech companies can afford to foot the bill. In February, Hawley and Sen. Richard Blumenthal, D-Conn., unveiled what\u2019s known as the GRID Act, which would require new data centers to use power sources that are separate from the grid.\u00a0\u00a0<\/p>\n

Hawley said Tuesday that Congress should say \u201cno more data centers\u201d unless the tech companies agree they will build their own power supplies.\u00a0<\/p>\n

\u201cWe ought to write that into law,\u201d he said.\u00a0<\/p>\n

After introducing a bill in March that would require data centers to disclose their energy and water usage, Sen. Richard J. Durbin, D-Ill., said last week he has since heard back from some industry experts about the self-cooling units \u2014 like the one proposed for Stratos \u2014 and was told that \u201cwater is not the major concern.\u201d\u00a0<\/p>\n

He still thinks Congress \u201cought to explore\u201d guardrails via legislation. \u201cThat still leaves the question of electricity, and I have some strong feelings about that as well,\u201d he continued.<\/p>\n

Other lawmakers are working on bills focused on water accessibility concerns but not explicitly tied to data centers exacerbating the issue.<\/p>\n

Curtis recently proposed legislation with Democratic Sens. Jacky Rosen of neighboring Nevada and Lisa Blunt Rochester of Delaware aimed at protecting drinking water infrastructure when faced with extreme heat or cold by expanding eligibility for the EPA\u2019s Midsize and Large Drinking Water System Infrastructure Resilience and Sustainability Program.\u00a0<\/p>\n

Blunt Rochester is also working on a proposal that would collect information on the environmental impacts of data centers, though timing for the bill is unclear.<\/p>\n

\u201cAs AI becomes more prolific in our lives, I am working on legislation to better understand the impact data centers will have on our environment \u2014 including on water consumption,\u201d she said in an emailed statement.<\/p>\n

The question of water cleanliness has continued to make headlines after Rep. Alexandria Ocasio-Cortez, D-N.Y., held up jars of brown liquid at a congressional hearing last month, saying they were drawn from a tap in Georgia.<\/p>\n

Last week, Ocasio-Cortez said, \u201cPeople should not have their health compromised because of AI data center construction, and this idea that this industry should have absolutely no oversight, and then just cite China as the reason for that, I don\u2019t think holds water.\u201d<\/p>\n

Ocasio-Cortez has joined Sen. Bernie Sanders, I-Vt., in calling for a pause on construction and upgrades of data centers until the enactment of federal laws to regulate AI, including around energy costs and environmental effects.<\/p>\n

It comes as Democrats in Congress disagree over the best lane to legislate on the topic of AI more broadly, with Sanders and other progressives floating big ideas like creating a sovereign wealth fund and having the federal government take a 50 percent stake in major AI companies.<\/p>\n

Most lawmakers say more data is needed about data centers before Congress can start legislating.<\/p>\n

\u201cMost of these decisions are local,\u201d Curtis said when asked about regulating data centers amid water crises.<\/p>\n

\u201cWater is so different in even different parts of the state. I do think there\u2019s a potential role for Congress in certifying certain classes of AI. So, if we do a LEED gold or elite platinum building, I think a system like that would really help both the AI builders and the communities, because right now they don\u2019t trust what the AI developers are saying,\u201d he said.\u00a0<\/p>\n

But \u201cI wouldn\u2019t give up on\u201d congressional action, Durbin said, while predicting local and state governments aren\u2019t \u201cgoing to wait around for the federal government to solve this.\u201d\u00a0<\/p>\n

\u201cThere\u2019s a lot of local concern about it. So, I think unless we get a move on, they\u2019re going to move without us.\u201d<\/p>\n

Read more 6 takeaways halfway through primary season<\/a><\/p>\n

David Jordan contributed to this report.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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