Kevin O’Leary’s massive Utah data center project is being sold as an economic engine, but one of its biggest promises is already getting more complicated.
Wonder Valley, a proposed 40,000-acre data center and power development in Box Elder County, recently advanced after county commissioners approved it. The project has been promoted as bringing thousands of jobs to Utah, including 10,000 construction jobs and 2,000 permanent roles cited by O’Leary. But O’Leary Ventures CEO Paul Palandjian told Business Insider the construction figure may be closer to 4,000 over 10 to 15 years.
The gap does not necessarily mean the project’s job claims are final or false. But it does raise a familiar question around large data center developments: how much of the economic promise will actually remain once construction ends?
A massive project with a massive projected headcount
According to Business Insider, the project combines a data center facility with a power plant capable of generating up to 9 gigawatts of power. It sits on a massive 40,000 acres in Box Elder County and is expected to be built over at least 10 years, according to KSL.
However, Palandjian told Business Insider that he estimated the project would require closer to 4,000 workers over 10 to 15 years. But he added that the “numbers are fluid, and they change by the day.” He further explained that whatever figure the public hears is a result of the team’s “current thinking on the project,” which might explain why O’Leary earlier publicized 10,000.
According to Business Insider, although data centers often require many construction workers, their demand for permanent workers is low. The investor also noted that the project would create 2,000 permanent jobs when completed, and while this one doesn’t seem exaggerated, a deeper look reveals a story similar to Palandjian’s.
Research from the University of Southern California Marshall School of Business revealed that upon completion of a data center, the size of its on-site workforce reduces by 78% on average. Plugging that into Wonder Valley would result in 1,350 permanent workers instead of 2,000.
Wonder Valley passes local approval despite protests
Box Elder County’s local officials cleared the project on Monday, according to a separate report from Business Insider.
The MIDA-backed project is expected to receive several tax reliefs, including a 100% personal property tax refund and an 80% real property tax refund, with a validity period of up to 30 years. MIDA, or the Military Installation Development Authority, is a state agency in Utah responsible for generating tax revenue from growing economic activity.
However, not everyone is happy with the development.
Many have taken to the streets in protest, citing what they say is a lack of transparency by local officials and calling for the rescission of the data center’s approval. According to the protesters, building a data center in Box Elder County will affect water and air quality.
However, O’Leary said the protesters were hired from outside Utah and that the perception of data centers is wrong. Responding to the protesters’ request, he says they should “think about the number of jobs” the data center will bring to the area.
With approval now in place, attention is turning to whether Wonder Valley can deliver on the promises that helped push it through. O’Leary has continued to champion the project as a major economic boost for Box Elder County, through the thousands of jobs attached.
But with residents still pushing back and newer estimates casting doubt on the scale of those employment figures, the project is facing renewed scrutiny even before construction begins.
For more on the infrastructure pressures behind AI’s data center boom, read TechRepublic’s look at how surging demand is reshaping power and cooling needs.