Developer pulls out of hyperscale data center, natural gas plant proposed on BLM land in Henderson

A Texas-based developer, identified as Skylar Opportunities LLC, an affiliate of Skylar Capital Management, has withdrawn its application for a 1,000-megawatt hyperscale data center and natural gas plant on 680 acres of federal land near Henderson, Nevada. The project, which could have become one of Nevada's most energy-intensive data centers, was proposed near the Paradise Hills master-planned community. The developer cited "the city planned urban development efforts in same area" as the reason for its withdrawal after consulting with the City of Henderson and the Bureau of Land Management (BLM).

The cancellation is a victory for environmental groups like the Sierra Club, whose political director Christian Solomon stated, "Americans just don't want data centers on public lands." The article highlights concerns about the immense energy demands of such facilities, with the proposed data center potentially consuming enough power for 700,000 to 1 million homes, according to NV Energy. Environmentalists and local residents, including Sierra Club volunteer Teresa Bell, also expressed worries about the cumulative environmental impacts, including increased heat and water scarcity.

This development occurs amid a broader push to regulate data center growth in Nevada. The Henderson City Council previously rejected a local data center pause, opting for case-by-case agreements. However, federal land falls under BLM purview. Statewide, Governor Joe Lombardo recently issued an executive order requiring data center developers to sign a community benefit pledge for tax incentives, with terms to be finalized by November 6. Additionally, an interim legislative committee is advancing a bill to impose a statewide pause on data centers and eliminate their tax breaks, making data center regulation a key issue for the 2027 Nevada Legislature.