Kevin O’Leary refutes claims that data center would drain Great Salt Lake – KUTV

Kevin O’Leary has refuted claims that a proposed artificial intelligence data center in Utah would contribute to the depletion of the Great Salt Lake. The investor and entrepreneur addressed these concerns on May 10, 2026, asserting that the project’s design avoids the water-drainage issues cited by critics.

The dispute centers on the massive cooling requirements inherent in AI infrastructure. Data centers housing thousands of high-performance GPUs generate significant heat, typically requiring millions of gallons of water for evaporative cooling systems to maintain operational temperatures.

Reporting from KUTV indicates that O’Leary is pushing for the development of a facility that would integrate into Utah’s growing tech corridor. However, the proposal has met resistance from environmental advocates and local stakeholders concerned about the fragile state of the Great Salt Lake.

Water Scarcity and Infrastructure Risks

The Great Salt Lake has faced decades of decline in water levels due to agricultural diversion and prolonged drought. This decline has raised alarms regarding the exposure of lakebed minerals, which can create toxic dust storms affecting public health across the region.

Critics of the O’Leary proposal argue that adding a high-consumption industrial user to the local water table could accelerate these environmental risks. The business model for AI data centers often relies on low-cost land and available power, but water availability has become a primary regulatory bottleneck in the Western United States.

O’Leary has countered these arguments by suggesting the use of advanced cooling technologies. He has indicated that the facility would not rely on the type of water-intensive processes that would threaten the lake’s stability.

The AI Infrastructure Race

The project is part of a broader global trend where investors are racing to secure physical infrastructure for generative AI. The demand for compute power has led to a surge in data center construction, often placing these facilities in regions with favorable tax incentives or energy costs, regardless of local ecological constraints.

Utah has become an attractive destination for such investments due to its stable political climate and available land. However, the state’s water laws are stringent, and any project requiring significant water rights must undergo rigorous scrutiny from state regulators and water boards.

The business viability of the proposed center depends on securing these rights without triggering a legal or public relations backlash that could stall construction. O’Leary’s public refutation is seen as an attempt to preempt regulatory hurdles by framing the project as technologically sustainable.

Technical Cooling Alternatives

To avoid the use of local freshwater, some modern data centers have pivoted to alternative cooling methods. These include:

• Closed-loop liquid cooling, which recirculates the same water through a chilled system.
• Air-cooling systems that utilize external ambient temperatures, though these are less efficient in hot climates.
• The use of treated wastewater or greywater to reduce the impact on potable water sources.

While O’Leary has not released the full technical specifications of the Utah site, his claims suggest a departure from traditional evaporative cooling. If the project utilizes a closed-loop system, the net water consumption would be significantly lower than traditional facilities.

Economic Implications for Utah

From a business perspective, the data center represents a significant capital investment in Utah’s digital economy. Such facilities typically bring high-paying technical jobs and increase local tax revenues through property and equipment taxes.

The tension remains between the immediate economic gains of the AI boom and the long-term sustainability of the state’s natural resources. The outcome of the Great Salt Lake controversy will likely serve as a precedent for how Utah manages future requests for industrial-scale tech infrastructure.

The project currently awaits further environmental impact assessments and formal approvals from local zoning and water authorities to determine if O’Leary’s claims of sustainability align with the ecological requirements of the region.