Bureau of Land Management asks court to revisit Boulder City data center approval
The Bureau of Land Management (BLM) has asked the Interior Department to reverse its approval for a data center project near Boulder City, Nevada, seeking to conduct further environmental review. This decision follows the Interior Board of Land Appeals' rejection of BLM's previous reasoning that the data center was "essentially like" a previously approved solar plant. The project, proposed by Townsite Solar 2 LLC, has faced significant public backlash and political scrutiny, leading to legislative proposals and executive orders addressing data center development.
The Bureau of Land Management (BLM) has formally requested the Interior Department to "set aside" a previous ruling that greenlit a data center project near Boulder City, Nevada. Filed in court documents on Monday, the BLM's attorneys stated a need for additional review of the application, acknowledging their prior decision to approve a right-of-way amendment should be revisited. The developer, Townsite Solar 2 LLC, which aims to build the data center, did not oppose this motion, though Boulder City plans to.
The controversy stems from the developer's attempt to amend an existing right-of-way granted in 2023 for a solar power plant, intending instead to build a data center. The Interior Board of Land Appeals previously rejected the BLM's reasoning that the data center and solar plant projects were "essentially like" each other with "similar anticipated impacts," asserting they were not "substantially the same" and required new environmental studies. This situation has intensified a long-standing local debate, with the Boulder City planning commission having previously rejected the initial data center proposal due to public opposition.
The Boulder City project has drawn significant political attention. Representative Dina Titus introduced the Public Lands Accountability Act, aiming to prevent federal agencies from amending existing right-of-way permits for data centers on BLM land without a new environmental permitting process, and requiring impact assessments on water and the electric grid. Nationally, the Trump administration has indicated support for building data centers on federal lands, while a Pew Research survey shows growing public concern about data centers' environmental impact. In Nevada, Governor Joe Lombardo signed an executive order targeting tax breaks for data center developers, requiring them to meet local water standards, cover infrastructure costs, and ensure grid stability, with state lawmakers also reviewing these tax incentives.