Utah Natural Resources Chief Defends Data Center Plan as Water Concerns Persist
May 10, 2026
Utah Natural Resources Chief Defends Data Center Plan as Water Concerns Persist
A proposed data center development in Box Elder County, Utah, continues to draw public scrutiny over its potential impact on water resources and the health of the Great Salt Lake. The project, backed by investor Kevin O’Leary, has sparked a heated debate about balancing technological infrastructure with environmental stewardship in a region already facing water scarcity challenges.
O’Leary took to social media to push back against what he called misinformation, stating, “There’s lots of rumors that we’re going to suck the Great Salt Lake dry. That’s ridiculous. Of course that’s not going to happen.” He also noted that the facility could utilize air-cooling technology, which would require little to no water, addressing one of the primary concerns raised by local communities and environmental advocates.
Joel Ferry, executive director of the Utah Department of Natural Resources, confirmed that the project’s original water rights application had been withdrawn and will be refiled following modifications to the proposal. “The project has changed from when they filed that application back in March,” Ferry said. The initial request sought to convert agricultural water rights for industrial use, specifically for the data center, and proposed a volume of 1,900 acre-feet of water.
Ferry emphasized that state engineers are required to ensure the project does not expand water use beyond what has historically been tied to the property. “The water that’s been used historically is what can be used going forward. So the net impact to the Great Salt Lake is going to be zero because this water is already being used,” he explained. This framing suggests the development would not add new water demand but rather repurpose existing allocations.
Despite these assurances, the project still faces multiple layers of environmental review before construction can begin. Ferry noted that every permit goes through a public process, including opportunities for public comment and hearings. “There is an opportunity for the public to engage in this potential data center,” he said. The ongoing controversy highlights the broader tension between the rapid growth of data center infrastructure—driven by demand for cloud computing and artificial intelligence—and the need to protect vulnerable ecosystems like the Great Salt Lake, which has been shrinking due to drought and upstream water diversions.
Source: KUTV
