Nevada critics move to stop Boulder City data center on federal land
Opponents are escalating their fight against a proposed data center in Boulder City, Nevada, which was shifted to federal land after local rejection. They have taken the dispute to Congress and the courts, arguing the project's environmental review was inadequate and that it sets a dangerous precedent for federal land use. Concerns primarily revolve around the significant increase in water and electricity consumption compared to the previously approved solar project for the site.
A dispute over a proposed data center in Boulder City, Nevada, has escalated into a broader national issue, with critics contending that its placement on federal land could set a precedent for power-hungry AI facilities across public lands in the Western U.S.
Following a prior rejection by a city panel for a lease on city-owned land, the project, led by Townsite Solar 2, a subsidiary of Skylar Capital Management, was quickly shifted to an adjacent federal parcel previously cleared for a solar development by the Trump administration. Federal land managers concluded that substituting a data center for a solar installation would not significantly alter environmental impacts, a determination vehemently challenged by opponents.
This week, the Center for Biological Diversity and the Sierra Club asked the Interior Board of Land Appeals to halt construction while their case is reviewed. Separately, Boulder City's attorney's office filed for similar relief. The city argues the data center is not a permitted use under federal law and would severely strain its electricity supply, potentially increasing costs for residents, as the project's power needs are estimated at three times the city's load and water use would dramatically increase.
The controversy has also reached Congress, where U.S. Rep. Rashida Tlaib introduced H.R. 9939, the "No AI Data Centers on Federal Lands Act," seeking to ban such developments. Critics emphasize that a full, transparent public review is essential, given the project's substantial demands for water and electricity, especially with lower Lake Mead levels impacting Hoover Dam's hydropower output. Proponents of data center expansion cite potential jobs, tax revenue, and infrastructure investment.