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A progressive nonprofit organization alongside five Utah residents have initiated legal action against government officials and the Military Installation Development Authority (MIDA), the special entity overseeing Kevin O’Leary’s proposed Stratos Project data center in Box Elder County. The lawsuit, filed Wednesday in Utah’s 3rd District Court, alleges that residents’ rights have been violated in the approval and management of the project.
The plaintiffs, represented by attorney David Irvine, challenge the constitutionality of MIDA, arguing that it exercises powers beyond what the Utah Constitution permits. According to Irvine, MIDA’s control over public health, safety, taxation, and land use across tens of thousands of acres in Box Elder County is permanent, irrevocable, and lacks voter accountability.
The lawsuit contends that MIDA’s oversight effectively strips local citizens of meaningful public input, placing significant legislative authority in the hands of an unelected board. It further names Utah Senate President J.
Stuart Adams and State Senator Jerry Stevenson-both MIDA board members and active legislators-claiming their dual roles violate prohibitions against holding multiple public offices simultaneously. The plaintiffs seek to have the data center’s approval declared null and void on these grounds.
Officials from MIDA and Box Elder County have yet to respond formally to the lawsuit. A MIDA spokesperson indicated the organization is reviewing the case, while Box Elder County officials await formal court documents before commenting.
The original Stratos Project envisioned a sprawling 40,000-acre AI data center campus in Hansel Valley. Amid rising political resistance, including a letter from Senator Adams requesting a 75% reduction in the project’s scale, Kevin O’Leary recently confirmed plans to significantly downsize the development. Adams announced that O’Leary agreed to the reduction, along with commitments to protect the Great Salt Lake’s water supply and preserve thousands of acres for open space, wildlife, and agriculture.
Adams emphasized that public engagement has influenced the project’s direction and underscored that the proposal remains in early stages, subject to comprehensive permitting and environmental review.
O’Leary echoed this sentiment on social media, affirming his team’s dedication to addressing all concerns raised.
The Box Elder County Commission initially approved the project in May, followed by an executive order from Governor Spencer Cox aimed at safeguarding environmental and consumer interests.
The lawsuit seeks a judicial ruling that deems MIDA’s and the county commission’s actions unconstitutional, challenges the legitimacy of Adams’ and Stevenson’s appointments to MIDA, and requests a permanent injunction to halt any further implementation of the Stratos Project.
Attorney Irvine stated, “Backroom deals and pay-to-play have no place in Utah government, and Box Elder County residents deserve a voice in what happens to their community. We’re going to court to make sure they get one.”