Shark Tank investor Kevin O’Leary acceded to demands Thursday and cut the footprint for his proposed 40,000-acre data center complex in northern Utah in half.O’Leary’s announcement is the latest development in a fight playing out between Utah politicians and the Canadian businessman. O’Leary says his “Stratos” project will produce its own electricity and divert excess water to replenish the dwindling Great Salt Lake. Yet protesters and elected officials, who allege that the project will strain local resources and burden the environment, have pushed back against it.Utah Senate President J. Stuart Adams sent O’Leary a letter on June 1 demanding that the project be scaled back 75% to approximately 10,000 acres. Adams also called for greater environmental commitments before it could move forward.

O’Leary countered in a Thursday letter to Adams that he would eliminate two parcels of land from the project, bringing its scope to roughly 20,000 acres. O’Leary also committed to entering into a memorandum of understanding with the Utah Department of Natural Resources to protect wildlife, agriculture, and open space.

“Much of the alarm surrounding this project has been based on incorrect assumptions and facts about land use, water use, heat dispersion, air quality, and project timeline that does not reflect reality,” O’Leary wrote. “O’Leary Digital has not broken ground, has not received permits, and the development plan is still being engineered and refined.”