May 22, 2026
Two Utah political strategists say they were inundated with texts from concerned friends after Kevin O'Leary publicly accused critics of his massive Utah data center project of having ties to the Chinese Communist Party.
Gabi Finlayson and Jackie Morgan, co-founders of Elevate Strategies, found themselves at the center of a firestorm after O’Leary made the remarks during a segment on Fox Business. The pair, who have worked on Democratic campaigns and run Elevate Utah — a political content platform where they’ve publicly opposed the proposed Stratos Project — said they were blindsided by the allegations.
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"These are proxies for the Chinese government, is my argument, and if they're not — because I want them to be able to defend their names," O'Leary said. "Come out, come out wherever you are."
The debate stems from a proposed 40,000-acre artificial intelligence data center development in Box Elder County’s Hansel Valley that is projected to be more than twice as large as Manhattan.
Why communities are pushing back
Rather than backing down after being called out, Finlayson and Morgan responded to O'Leary with a sense of humor. The two took to social media and turned O’Leary into the punchline, teasing his recognizable habit of wearing flip-flops with a suit during television appearances.
"The only foreign operative here is a Canadian wealthy person trying to ruin our state," Finlayson told Business Insider.
Still, the exchange points to a much larger issue playing out in communities across the country. Public skepticism around AI data centers is mounting, with seven in 10 Americans saying they oppose having artificial intelligence facilities built in their local area, according to Gallup.
Similar to Finlayson and Morgan, residents have voiced concerns over how these projects could affect water resources, raise utility costs and change the character of their communities.
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Those concerns may feel especially relevant in Utah, where electricity prices have already risen. Residential power costs in the state increased 15.2% between May 2024 and May 2025 — the third-largest jump nationwide, according to the U.S. Energy Information Administration. Across the U.S., electricity prices increased by about 6.5% during the same period.
Concerns around resource use have also drawn attention from state leaders. Utah Governor Spencer Cox said in a post on X that he requested the project developer release a public water plan showing the development would not harm the Great Salt Lake. He added that water use should be publicly reported and said the project should not reduce water flowing into the lake.
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O’Leary’s team pushes back on criticism
O’Leary did not respond to Business Insider’s request for comment, but Paul Palandjian, CEO of O’Leary Ventures, clarified the company’s position.
According to Palandjian, the firm is not alleging that any particular individual is acting as a foreign operative and instead wants more transparency around who is financially backing opposition efforts tied to the project.
"To be clear about Elevate: We accept that Elevate's principals are American political strategists. We are not contesting that," Palandjian told Business Insider. "What we have asked, and continue to ask, is for full donor transparency from the organizations that are funding the opposition to this project."
Palandjian said the company recognizes the concerns being raised by residents and emphasized what O’Leary Ventures sees as the project’s economic upside. He estimates the development may generate roughly 4,000 construction jobs during its 10- to 15-year buildout.
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O’Leary has also suggested that some of the pushback surrounding data centers stems from perceptions that no longer reflect how the industry has changed. He argued that the technology and energy systems supporting these facilities have progressed considerably and said he hopes the Utah project can serve as an example of responsible development.
Even as companies highlight the potential benefits of data center projects, questions around their environmental footprint have become more common as AI infrastructure rapidly expands. Some large facilities can use up to five-million gallons of water daily — an amount comparable to the needs of a town of roughly 10,000 to 50,000 residents.
The bigger question around AI's growth
According to a Brookings analysis, the rise of AI is leading to a boom in data center construction, with tech companies saying these projects can bring jobs and more tax revenue to communities.
But researchers say many residents and policymakers are becoming worried about the strain large facilities could put on local power grids and electricity costs. With many households already feeling squeezed by rising expenses, Brookings noted that growing energy demand from data centers could add even more pressure and raise questions about who ends up paying the price.
Still, O’Leary argues his Utah project will be different. In a video posted on Facebook, he said his background gives him a unique perspective, describing himself as the only data-center developer with a degree in environmental studies.
"We want it to be the shining example of how you do this," he said. Whether residents buy into that vision remains an open question.
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Victoria Vesovski is a Toronto-based staff reporter at Moneywise covering personal finance, lifestyle and trending news. She holds degrees from the University of Toronto and New York University, and her work has appeared on platforms including Yahoo Finance, MSN Money and Apple News.
