A proposed data center in Box Elder County, Stratos, is at the center of a plan to fund new construction projects for the Utah National Guard, including a potential replacement for the aging Tooele armory. The Military Installation Development Authority (MIDA) would collect taxes generated by the Stratos project to pay for these facilities, according to documents and interviews reviewed by FOX 13.
The Tooele National Guard armory, formally known as a readiness center, faces piling maintenance costs, and the Guard seeks to replace it. MIDA lists 27 Utah National Guard properties where it could build or renovate, with public documents identifying specific needs such as a firing range, tactical equipment maintenance shop, training areas, vehicle maintenance, and classrooms. Clearfield Mayor Mark Shepherd, a member of MIDA’s governing board, told FOX 13 he believes the Stratos project offers a "phenomenal benefit to the military" and that income from Stratos "will help the National Guard."
Investor Kevin O’Leary, a backer of Stratos, told FOX 13 in June that Utah offers the "perfect location" with the "right educated workforce" and "right defense" to support the military. Stratos developers are reportedly hoping that the U.S. military or defense contractors will become customers at the data center, alongside major artificial intelligence companies.
However, the plan has generated significant controversy, including protests at public meetings. State Sen. Brady Brammer, R-Highland, plans to introduce a bill that could require MIDA developments to have more direct ties to the military. Brammer noted to FOX 13 that Stratos is a "whole lot bigger development that's on private land, not military land, and it's not next to a military base," suggesting it may have gone beyond MIDA's intended scope. He clarified that he is not seeking to stop the project.
Doug Rogers, a U.S. Air Force veteran, expressed "mixed emotions" about data centers from the Fraternal Order of Eagles lodge next to the Tooele armory. Rogers stated he would prefer to pay higher taxes to fund the National Guard rather than rely on the data center, saying, "I don't know what this data center is going to do."
MIDA, a state agency, was established by the Utah Legislature in 2007, with origins traceable to the 1990s. Its creation aimed to bolster Hill Air Force Base’s economic defenses after it was considered for closure during Department of Defense base cuts. MIDA’s past projects include Falcon Hill, a business park near Hill Air Force Base, and an addition to Deer Valley ski resort catering to military personnel and veterans.
Mayor Shepherd stated that without funding from Stratos, these National Guard projects would either have to compete for money from the Pentagon alongside other states or be paid for by everyday Utahns' taxes, emphasizing that the National Guard "has got to be paid for somewhere." Representatives for the Utah National Guard declined to comment on camera but noted in emails that the project list remains fluid and that it could take years before Stratos generates funds for MIDA to distribute. Shepherd also indicated that many specific National Guard projects that MIDA could help fund might be classified, limiting what could be shared publicly.
