Data center project highlights federal land ownership issues near Boulder City
The Bureau of Land Management approved the Townsite Data Center project near Boulder City, Nevada, bypassing local input and surprising residents who had previously opposed a similar project on city-owned land. This decision highlights the debate over federal land ownership in Nevada, as local concerns about environmental impact, power, and water usage were raised. The approval means Boulder City loses potential tax revenue and lease payments that would have come from a project on city-controlled land.
The Bureau of Land Management (BLM) recently approved the Townsite Data Center project near Boulder City, Nevada, a decision that surprised local residents. Many had previously opposed efforts to allow a data center on city-owned land, citing concerns about pollution, significant power demands, and excessive water use, though the Southern Nevada Water Authority already prohibits evaporative cooling.
This federal approval, which utilized a process intended to cut red tape during environmental reviews, bypassed the local input that would have occurred had the project been on city-owned land. Had the data center been built on city property, Boulder City would have received an estimated $2.3 million in taxes and lease payments, funds that could have benefited residents. Instead, the federal government's extensive land ownership in Nevada, particularly in Clark County, limits local control and tax revenue, with Clark County receiving only minimal payments in lieu of taxes.
The editorial from the Las Vegas Review-Journal suggests that this incident could prompt Nevada Democrats to advocate for greater state control over land within its borders, especially in developed areas like Clark County. It also notes a growing national opposition to data centers, often driven by fears of artificial intelligence's impact on employment, although data centers like Switch's operations in Southern Nevada have historically not faced widespread public outcry.