Proposed AI Data Center Near Boulder City Becomes Issue in Nevada Governor's Race
Residents in Boulder City, Nevada, successfully opposed an AI data center on private land, but developers shifted the project to adjacent federal property, where the Bureau of Land Management approved it. Construction is stalled after a judge ruled that the government could not rely on an outdated environmental review, while the project has become a major issue in Nevada's governor's race.
The proposed Townsite data center near Boulder City became the first such project approved on federal public land after developers withdrew an application opposed by local residents and pursued adjacent property managed by the U.S. Bureau of Land Management. Construction remains stalled after a judge ruled that the government could not use an environmental review prepared when the site was intended for a solar farm.
The project has become a prominent issue in Nevada's gubernatorial campaign, with Democratic nominee and state Attorney General Aaron Ford opposing data centers on public lands and proposing to pause new tax abatements pending an audit. Republican Gov. Joe Lombardo supports data center development if projects have community backing, but has signed an executive order adding guardrails and requiring them to contribute more tax revenue.
Boulder City residents and environmental advocates argue that data centers could damage desert landscapes, wildlife, water supplies and electricity affordability. Industry representatives say responsible development on federal lands can support economic growth, while the Sierra Club's Toiyabe Chapter is calling for stronger environmental reviews and public engagement requirements.