A Utah-based coalition opposing data center construction has filed a defamation lawsuit against Fox News and businessman Kevin O'Leary, alleging the network broadcast false statements about their funding sources. The suit, lodged by Alliance for a Better Utah, Elevate Strategies, and individuals Gabrielle Finlayson, Taylor Knuth, and Josh Kanter, accuses O'Leary of using Fox's platform to launch what they describe as a 'defamatory smear campaign.'
According to the legal filing, O'Leary appeared on Fox programs five times over three weeks in May, claiming the plaintiffs were tied to Chinese interests. The suit contends that Fox was 'instrumental' in amplifying these allegations, despite what it calls O'Leary's 'inherently unreliable claims' and lack of supporting evidence. The plaintiffs argue that the network allowed him to broadcast false accusations to millions of viewers without proper scrutiny.
Fox's Apology and Defense
Last month, Fox News issued a public apology for O'Leary's remarks, stating it was 'aware of no evidence that they are funded by, or acting in the direction of, or in coordination with Chinese interests in opposing Mr. O'Leary's project.' The network also distanced itself from his comments, which were made during an appearance on 'Mornings with Maria Bartiromo.' In that segment, O'Leary described China as an 'adversary' that wants 'us to stop building our electrical grid.'
In a statement to The Hill, Fox News Media said it 'publicly corrected the record on every program where on-air guest Kevin O'Leary's comments were made, all of which was extensively publicized.' The network added, 'We will vigorously defend against this lawsuit.'
O'Leary's Clarification
O'Leary did not apologize for his comments but issued a social media post last month seeking to clarify his position. He wrote that he 'would like to clarify that I have no evidence that Alliance for a Better Utah, Elevate Strategies, Gabrielle Finlayson, Taylor Knuth or Josh Kanter are funded by China or the Chinese Communist Party.' The post stopped short of retracting his earlier statements.
The lawsuit highlights the growing tensions over data center development in Utah, a state that has seen a surge in such projects amid the broader tech boom. The controversy echoes similar disputes elsewhere, as data center backlash reshapes governor races in Pennsylvania and Texas. Critics have raised concerns about environmental impacts, energy consumption, and community displacement, while proponents tout economic benefits.
Broader Context of Data Center Debates
The case also underscores the political and legal battles surrounding data center expansion. In New York, Governor Kathy Hochul recently froze large AI data centers for one year, citing accountability gaps, a move that drew criticism from former President Donald Trump. Meanwhile, a recent PJM auction revealed data centers driving $6.3 billion in new power costs across 13 states, fueling debates over grid reliability and ratepayer impacts.
The plaintiffs are seeking damages and a retraction, arguing that O'Leary's false statements have harmed their reputations and ability to advocate on data center issues. As the case unfolds, it could set a precedent for how media outlets handle unsubstantiated claims by high-profile guests on contentious topics.
