Can Larry Ellison really turn Lanai, Hawaii into a ‘health utopia’? (2024)

Ellison revealed last weekthat he has moved to Lanai, Hawaii, amid the coronavirus pandemic. He plans to use “the power of Zoom to work” from the island, he wrote in an email to Oracle employees, who had been asking about Ellison’s plans in the wake of Oraclemoving its headquarters to Austin, Texas.

Ellison owns almost the entirety of Lanai. He bought nearly 98 per cent of the island in 2012 for a reported US$300 million; his purchase included 87,000 (35,200 hectares) of the island’s 90,000 acres (36,400 hectares) of land.

Lanai, which is home to about 3,200 residents, is the smallest inhabited island in Hawaii and is home to serene beaches, rugged terrain, high-end resorts and Ellison’s sustainability ambitions, which he’s executing through a development company called Pulama Lanai.

Here’s how Lanai came to be owned by Ellison and what he’s planning for the island

In June 2012, Ellison bought Lanai for an estimated US$300 million. Before Ellison’s purchase, the island was owned by billionaire Dole chairman David Murdock, who had reportedly been asking for US$1 billion for the island. Murdock became the owner of Lanai in 1985 after taking over Dole’s parent company, Castle & Cooke. Before Murdock’s ownership, the island was controlled by “Pineapple King” James Dole.

The 141-square-mile (365 sq km) island, which is eight miles (13km) off the coast of Maui, has zero traffic lights and few paved roads, according to Forbes. Compared with other Hawaiian islands, Lanai is secluded – but Ellison has plans to change that. He wants to turn Lanai into a tourist destination.

Lanai already boasts two Four Seasons-run hotels. The penthouse suite at the Four Seasons Hotel Lanai costs US$21,000 per night, making it the most expensive suite in Hawaii. The island was also home to two golf courses when Ellison bought it, including Manele Golf Course. In 1994, before Ellison’s ownership of the island, Microsoft co-founder Bill Gates got married at the 17th hole of the course.

The other course, Koele, was designed by golfer Greg Norman. The course has since been shut down, and an adventure park and zip line have been installed in its place.

In 2014, Ellison bought budget airline Island Air, a budget airline that ferries passengers from Oahu to Maui and Lanai. But two years later, after the airline lost US$21.78 million and had to lay off roughly 20 per cent of its workforce, Ellison sold a controlling interest in the airline.

Ellison’s Lanai purchase included an animal rescue centre. Because there are no natural predators to cats on Lanai, the feral cat population at the shelter has ballooned to over 400 cats (which Ellison technically owns). In recent years, it’s become a travel destination in itself.

Ellison’s ambitions extend beyond tourism, however. He plans to create “the first economically viable, 100 per cent green community”, according to The New York Times.

In 2018, Ellison launched a wellness company called Sensei, which is working on three main issues. It includes global food supply, nutrition and sustainability. Sensei’s goal is to use data to help people lead healthier and longer lives.

Sensei built two 20,000 sq ft hydroponic greenhouses, known as Sensei Farms. The greenhouses have sensors and cameras that track data about the farms, including water usage and airflow. According to Forbes, they’re powered by 1,600 Tesla solar panels (Ellison sits on Tesla’s board).

Sensei also built a luxury spa called Sensei Retreat that costs US$3,000 a night. Guests set physical and mental goals for their stay and the spa tracks their sleep, nutrition and blood flow. The heirloom tomatoes and cucumbers grown at Sensei Farms are used at the spa’s in-house Nobu restaurant, according to Forbes.

Ellison reportedly wants to purchase the island’s power plant and electric grid from Hawaiian Electric Co. to transition the island away from fossil fuels toward 100 per cent renewable energy.

Ellison’s goal is for Lanai to serve as a prototype for a “health utopia”, according to Forbes. Tesla CEO and Ellison’s close friend Elon Musk told Forbes that Lanai is like “a microcosm for the world”.

When the coronavirus pandemic struck Lanai this year, Ellison reduced or eliminated rent altogether for businesses on the island and paid the full wages and benefits for employees who worked for him.

All told, Ellison has spent roughly half a billion dollars on the island, going beyond his initial purchase (in 2014, he spent US$41 million on property alone). But Ellison’s wealth has only continued to rise during the pandemic – these days, he’s worth an estimated US$75.2 billion.

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This article originally appeared on Business Insider