Proposed AI data center on federal land becomes issue in Nevada governor's race

Proposed AI data center on federal land becomes issue in Nevada governor's race

News ClipDaily Breeze·Boulder City, Clark County, NV·10/13/2026

The proposed Townsite AI data center near Boulder City was shifted from private land to adjacent federal land after local residents opposed the original application. The Bureau of Land Management approved the federal-land project, but construction is stalled after a judge ruled that an outdated environmental review could not be used.

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Gov: U.S. Bureau of Land Management, Nevada Governor's Office, Nevada Attorney General's Office, U.S. federal government

The Townsite data center near Boulder City has become a major issue in Nevada's governor's race after developers moved the project to federal land following successful local opposition. The U.S. Bureau of Land Management approved the proposal, making it the first data center authorized on federal public land, but a judge halted construction because the government relied on an environmental review prepared when the site was planned for a solar farm.

The project has intensified concerns about electricity costs, water supplies, wildlife and public participation. Democratic nominee and Nevada Attorney General Aaron Ford has pledged to oppose data centers on public lands and pause new tax abatements pending an audit, while Republican Gov. Joe Lombardo supports development if projects have community backing and has issued an order adding guardrails and requiring greater tax contributions. Environmental advocates argue that federal-land projects could bypass environmental protections and want Congress to strengthen review and public-engagement requirements.