Plan for first U.S. data center on public land faces scrutiny

Plan for first U.S. data center on public land faces scrutiny

News ClipThe Center Square·Boulder City, Clark County, NV·10/1/2026

The Townsite Data Center planned on federal land outside Boulder City, Nevada, has been placed on hold after environmental groups appealed its approval and secured a stay on construction. The Bureau of Land Management is seeking to withdraw its approval and reassess whether the project requires a separate environmental review.

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Gov: U.S. Bureau of Land Management, BLM Las Vegas Field Office, Interior Board of Land Appeals, City of Boulder City

The Townsite Data Center, proposed by TS2 Investments LLC and affiliated with Skylar Opportunities LLC, was approved for development on federal Bureau of Land Management land near Boulder City after the site’s prior solar-farm environmental review was used to support the project. BLM Las Vegas Field Office Manager Bruce Sillitoe approved the change, allowing the data center to proceed without a separate review under the National Environmental Policy Act.

The Sierra Club and Center for Biological Diversity appealed the decision to the Interior Board of Land Appeals and obtained a stay that pauses construction. BLM has since asked to rescind its approval while it evaluates the project’s potentially different impacts, including noise, backup power, water and cooling needs, and operational activity. Boulder City officials continue to oppose the project, while environmental advocates say the case could establish a national precedent for data centers on federal public land.