How the Trump Administration Turned a Solar Farm Into a Data Center
Boulder City, Nevada's planning commission rejected a data center proposal, but the Bureau of Land Management (BLM) subsequently approved the project on federal land within the city's limits. Boulder City is now challenging the BLM's decision, arguing it bypassed proper procedures, while environmental groups are also planning a legal challenge.
The Trump administration has approved a large AI data center on federal land within Boulder City, Nevada, despite the local government's prior rejection of the project. Townsite Solar 2, a joint venture between Skylar Opportunities LLC and renewables developer Arevon, originally proposed the data center to Boulder City but was met with immediate and fierce opposition, leading to its denial by the city's planning commission.
Townsite Solar 2 then proceeded to obtain approval from the Bureau of Land Management (BLM) by converting an existing right-of-way permit for a solar farm into permission for the data center. The BLM argued the data center was "essentially the same" as the solar farm, allowing it to bypass new public hearings and comment periods. Boulder City attorney Brittany Walker stated that the BLM's decision departs from precedent and federal land use planning statutes, with the city now actively fighting the federal assessment.
Former Biden administration BLM official Nada Culver criticized the decision, highlighting that it neglected local government consultation and environmental impact assessments, which are central to federal land management. The Center for Biological Diversity and the Sierra Club are also planning a legal challenge to prevent this action from setting a precedent for future data center developments on public lands. If the project proceeds on federal land, Boulder City anticipates losing approximately $2.3 million in annual revenue while potentially still incurring costs for infrastructure hookups.