A major new tech and energy project is being planned in Utah, and it could become one of the largest developments of its kind in North America. Investor and entrepreneur Kevin O’Leary, widely known as “Mr. Wonderful” from Shark Tank, recently presented the idea with strong enthusiasm, describing himself as someone driven by passion, excitement, and energy.
O’Leary Promotes Massive “Wonder Valley” Projects
Kevin O’Leary appeared before the Military Installation Development Authority (MIDA) to promote a planned 40,000-acre development in Utah. The project will include large-scale power generation systems and advanced data centres.
His company, O’Leary Digital, is working on two similar projects called “Wonder Valley.” One is in Utah, while the other is a $70 billion development in Alberta, Canada, located in the Municipal District of Greenview in the northwestern part of the province.
The Canadian project was announced in 2024 and is already further along, while the Utah project is still in early stages and needs approvals and regulatory clearances.
Race for AI Dominance
Speaking via video conference, O’Leary told the MIDA board that time is critical. He said the United States is in a global race with China to develop data centres and lead in artificial intelligence.
He explained that building large data centres is not easy because of strict approvals and infrastructure challenges. According to him, he has been working on such projects for three years across North America.
O’Leary also praised Utah, saying he only learned about the opportunity five months ago but believes the state is close to achieving something major.
Benefits for Utah’s Economy
O’Leary said the project would bring thousands of jobs to the state and help develop advanced AI computing systems. He also noted that many supporting industries would grow around the project, including manufacturing and service businesses.
Spencer Cox, Governor of Utah, supported the project, calling it a forward-thinking investment that could strengthen the economy, improve national security, and create opportunities for families.
Details of the “Stratos Project” Site
The Utah development is officially called the Stratos Project. According to state documents, it will include about 40,000 acres of privately owned land and 1,200 acres of military and state-owned land in western Box Elder County.
The project will feature advanced energy systems, large data centres, manufacturing units, housing, commercial spaces, and other infrastructure.
At full capacity, the site is expected to generate up to 7.5 gigawatts of power. For comparison, the entire state of Utah currently uses about 4 gigawatts annually.
Tax Incentives and Approvals
After O’Leary’s presentation, MIDA approved several proposals to support the project. These included tax incentives designed to make the development competitive.
The incentives include:
- 100% personal property tax relief through rebates for data centre equipment
- Real property tax on the compute campus set at 0.927%, with 80% of the revenue returned to developers
- Reduced energy tax from 6% to 0.5%
Even with reduced taxes, the project is expected to generate around $30 million per year for Box Elder County in its initial phase.
However, these agreements are not final yet. They still need approval from the Box Elder County Commission, which is scheduled to vote on the matter.
Energy Supply Still Unclear
One major question is how the project will generate the required 7.5 gigawatts of power. O’Leary Digital has said the Utah site has access to major interstate natural gas infrastructure, but detailed plans have not been fully disclosed.
A newly formed energy company, West GenCo, is involved as a partner and will handle permits and regulatory coordination for the project.
Rapid Growth of Data Centres in Utah
Utah already has 48 operational data centres using about 920 megawatts of power. Another 2,600 megawatts is currently under construction, which will more than triple the state’s capacity.
Most data centres are located along the Wasatch Front, and the 10 largest facilities account for around 80% of the total capacity. Even bigger projects, including a hyperscale facility near Delta, are also being planned.
This growth reflects a national trend, where demand for AI and cloud computing is driving rapid expansion. Across the United States, about 3,000 data centres are already operating, and around 700 more are under construction.
Power Demand and AI Impact
Shon Hiatt from the University of Southern California Marshall School of Business explained that AI data centres use much more energy than traditional ones—up to 8 to 10 times more.
By 2028, around 75 gigawatts of new power capacity will be needed in the U.S. for these facilities. To understand the scale, that amount is about 1.3 times the total electricity used by Texas in a year.
Risk of Power Shortages
Utah is already facing the risk of power shortages as demand increases. Studies show that the state could face grid stress by 2031, especially during extreme conditions.
Governor Cox launched “Operation Gigawatt” in 2024 to address this issue, aiming to double the state’s power output and expand energy sources like nuclear and geothermal.
Water Usage Concerns
Water is another major concern. Most data centres in Utah are located in areas already facing high water stress, according to the World Resources Institute.
A single 100-megawatt data centre uses about 2 million litres of water daily, which is similar to the needs of around 6,500 households.
However, newer cooling technologies are improving efficiency. Modern closed-loop systems can reduce water use by 70% to 75% compared to older methods.
