Television personality and entrepreneur Kevin O’Leary is facing legal action after two Utah-based political organizations accused him of falsely linking them to the Chinese Communist Party during a public campaign defending his proposed AI data center project.
The lawsuit, filed in the U.S. District Court for Utah, names both O’Leary and Fox News as defendants.
The plaintiffs argue that repeated statements made during television interviews and other public appearances damaged their reputations, caused financial losses, and exposed them to harassment and safety concerns.
Plaintiffs Say Accusations Caused Lasting Damage
The organizations behind the lawsuit—Alliance for a Better Utah and Elevate Strategies—along with their founders Joshua Kanter and Gabrielle Finlayson, contend that O’Leary’s comments went far beyond political criticism.
According to the complaint, the allegations resulted in severe reputational harm, emotional distress, economic consequences, and ongoing threats.
They are asking the court to award compensatory damages, with the amount to be determined during trial, as well as punitive damages intended to discourage similar conduct in the future.
O’Leary Rejects Claims and Calls Lawsuit a Fundraising Tactic
O’Leary’s attorney, Jeff Neiman, dismissed the lawsuit, describing it as an attempt to generate money and publicity.
He argued that the organizations had used the controversy surrounding O’Leary’s comments to raise funds and said the legal proceedings would allow greater scrutiny of the plaintiffs’ operations, funding, and activities through the discovery process.
The defense maintains that the facts surrounding opposition to the Utah data center project will become clearer as the case moves forward.
Lawsuit Details Multiple Television Appearances
Court documents allege that O’Leary made similar accusations during at least 10 media appearances between May and early June.
Among the statements highlighted in the lawsuit were interviews on Fox News’ Mornings with Maria and The Tucker Carlson Show, where O’Leary claimed the organizations were connected to Chinese Communist Party interests and were helping spread anti-project messaging across social media.
The plaintiffs describe those remarks as false and defamatory, arguing they formed part of a coordinated smear campaign aimed at discrediting critics of the proposed development.
Fox News Also Named in Legal Action
Fox News has also been included as a defendant, with the lawsuit claiming the network repeatedly gave O’Leary a platform to make the allegations before millions of viewers without adequate qualification.
The network has responded by saying it corrected the record on every program where O’Leary made the disputed comments and publicized those corrections.
The plaintiffs, however, argue those efforts came only after legal pressure had already been applied and were insufficient to repair the damage they say had already been done.
O’Leary Later Issued Public Clarification
In June, O’Leary posted a statement on Instagram acknowledging that he had no evidence to support claims that Alliance for a Better Utah, Elevate Strategies, or their leaders received funding from China or the Chinese Communist Party.
His legal team says he also offered to meet with the organizations to discuss the matter, but that offer was declined.
Lawyers representing the plaintiffs argue the clarification came only after they issued a formal legal demand and insist it does not erase weeks of allegedly damaging public accusations.
Opposition to Massive Utah AI Data Center Intensifies
The legal dispute stems from O’Leary’s ambitious Stratos Project, a proposed AI data center complex in Box Elder County, Utah, near the Great Salt Lake.
The development is designed to support as much as nine gigawatts of AI computing capacity and originally covered approximately 40,000 acres before plans were revised.
Environmental groups, local residents, and community activists have voiced concerns about the project’s potential impact on water supplies, energy consumption, and surrounding communities.
Political Fallout Follows Public Backlash
Public opposition reached a peak during a heated county meeting where residents protested before local officials approved resolutions allowing the project to proceed through a virtual vote.
The controversy has also carried political consequences.
Several elected officials who strongly supported the development later lost primary or reelection contests, including Utah Senate President Stuart Adams and two Box Elder County commissioners.
In response to mounting criticism, O’Leary unveiled a scaled-down version of the project, reducing the overall land area from 40,000 acres to 20,000 acres, with only half designated for data center construction and related infrastructure.
Debate Reflects Growing National Concerns About AI Infrastructure
The dispute surrounding the Stratos Project mirrors a broader national conversation about the rapid expansion of AI-powered data centers.
Communities across the United States have increasingly questioned the environmental costs associated with these facilities, particularly their demands on electricity and water resources.
At the same time, supporters argue that large-scale data centers can generate tax revenue, create jobs, and stimulate economic growth.
Officials in Northern Virginia, one of the country’s largest data center hubs, have previously credited the industry with helping fund public services while easing local property tax burdens.
As the Utah case moves through the courts, it is likely to draw attention not only for the defamation claims but also for the wider debate over balancing AI-driven development with community concerns.
