Cox calls for 'major reform' to MIDA after data center pushback

KEY TAKEAWAYS

• Gov. Spencer Cox supports major reforms to Utah's Military Installation Development Authority.
• He said the process around the Box Elder County data center "was not good."
• Cox also said he supports regulating how much heat data centers emit.

SALT LAKE CITY — Utah Gov. Spencer Cox says he supports making major changes to a state entity that approved a controversial artificial intelligence data center in Box Elder County.

The governor also backed state lawmakers taking action to close gaps in how Utah regulates data center development.

"We're all in, working with the Legislature to get this right," Cox said during his monthly news conference on Thursday.

Cox's comments came after months of significant backlash to the Stratos Project Area data center proposed in Box Elder County and backed by celebrity businessman Kevin O'Leary. The governor once defended the project — saying it's important for national security — but later softened his tone amid strong public pushback.

Now Cox says he wants lawmakers to change the Utah Military Installation Development Authority, or MIDA, which has been helping shepherd the project along.

"Stratos is the one that obviously got a tremendous amount of attention, and it should have," Cox said. "The process was not good, and the MIDA process especially. I had proposed changes to MIDA a year and a half ago — so two sessions ago — that never passed unfortunately, and I think we need major reform when it comes to MIDA."

Many critics have expressed concern about a lack of transparency early on in the process, and O'Leary told MSNOW earlier this month that he and his team "really screwed this up," referring to how they communicated plans for the data center and its environmental impacts.

When it comes to reforming MIDA, the governor says his office and state agencies should play a bigger role in understanding what projects are moving through. He also suggested MIDA has strayed from its initial responsibilities and goals.

Cox noted that independent entities like MIDA have received a lot of authority, but elected officials are ultimately the ones who are held accountable for how things go.

At least one state lawmaker is on board with significant reforms to MIDA. Rep. Jason Thompson, R-River Heights, said he is working on a bill to limit the authority to within five miles of military installations, and for projects that directly impact military training, operations or security.

"Recreational developments and AI or data center projects would not qualify unless the land and facilities are entirely owned by the federal government," Thompson said.

Public pushback

MIDA has been at the center of many complaints over the Stratos data center, and the backlash over the project has already had direct impacts on some of its members. Utah Senate President Stuart Adams — who also serves as the chairman of the MIDA board — lost his primary reelection bid in June in a stunning upset that many believe was influenced by his role in giving a green light to the data center.

Cox's political brand has also appeared to take a hit due to the process around the data center, as a recent Deseret News poll found his approval rating tumbled from 51% in January to just 41% this month, the lowest mark of his governorship.

The governor also told reporters he would support legislation to regulate how much heat comes from data centers and to add other environmental protections.

Data centers have been a focus on Capitol Hill this week. Tim Davis, head of Utah's Department of Environmental Quality, told lawmakers on Wednesday that the state has "major gaps" in regulating some potential impacts of new data centers, particularly heat and noise.

While companies must secure water and air quality permits before moving forward, and some counties and municipalities regulate noise through nuisance ordinances, Davis said the state doesn't have an overarching policy on either.

Water usage

Many who opposed the Stratos data center cited water use as a reason it should not be built in a dry state like Utah. Cox on Thursday said he would support legislation requiring data centers to install only closed-loop systems that use less water.

However, the governor insisted much of the information being spread about data centers and water usage is "wrong," and that newer data centers use far less water due to improving technology.

Jake Garfield, deputy director of the Utah Office of Energy Development, told lawmakers the same thing on Wednesday. He said the latest generation of data centers use "orders of magnitude less water."

"Most data centers being built in Utah are now using closed-loop systems and dry coolers, which have no evaporative loss," Garfield said.

He said the Stratos data center plans to use a closed-loop system on at least the first phase of the project, but the state has yet to permit the project for water use.

The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written.

Related topics

Data CentersUtah LegislatureUtahPoliticsNorthern Utah

Bridger Beal-Cvetko

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Bridger Beal-Cvetko is a reporter for KSL. He covers politics, Salt Lake County communities and breaking news. Bridger has worked for the Deseret News and graduated from Utah Valley University.

Daniel Woodruff

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Daniel Woodruff reports for KSL 5 News at 4 p.m., 5 p.m. and 6 p.m. and fill-in anchors at KSL.