Developer drops Boulder City data center request as BLM approves adjacent federal land use
Townsite Solar 2, LLC has withdrawn its data center application from Boulder City's Land Management Process following community opposition and a Planning Commission recommendation against the project. Despite the withdrawal, the federal Bureau of Land Management has approved the company's application for adjacent federal land, and the Boulder City Council will still discuss the proposal. Residents have raised concerns about water and energy consumption.
Townsite Solar 2, LLC, a developer proposing an AI data center in Boulder City, Nevada, has formally withdrawn its application from the city's Land Management Process. This action follows significant community opposition, including protests and a petition with over 6,000 signatures, and a 6-1 vote by the Boulder City Planning Commission in May recommending against the project.
Despite the withdrawal, the project is not entirely halted. On June 26, the federal Bureau of Land Management (BLM) approved Townsite Solar 2's request to amend its right-of-way grant for an adjacent 80-acre federally owned parcel to allow data center use, a decision currently in a 30-day appeal period. Boulder City officials announced that the City Council will still address the proposal at an upcoming meeting, marking the conclusion of the city's current process.
The project, an affiliate of Skylar Capital Management, sought to develop a data center on 88.5 acres of city-owned land. Initial estimates projected the project could generate approximately $2.3 million in annual revenue for Boulder City. Residents' primary concerns include the project's impact on water and energy consumption, heat, noise, and its compatibility with the city's character. The broader regional context includes NV Energy's statements on needing to significantly increase energy production statewide to accommodate proposed data centers, and other Nevada localities, such as Reno, Nye County, and Clark County, also grappling with data center proposals and considering moratoriums or increased regulatory oversight.