Federal Panel Halts What Would Be First Data Center on Public Lands
A federal panel has issued a temporary stay halting the construction of the proposed 80-acre Townsite Data Center near Boulder City, Nevada, which would have been the first AI data center on US public lands. The Interior Board of Land Appeals sided with environmental groups and Boulder City, arguing that the Bureau of Land Management (BLM) failed to conduct a proper environmental review for the data center project. The stay blocks construction while the appeal regarding environmental impacts and increased electricity and water demands is considered.
The Interior Board of Land Appeals, a federal appellate body, has issued a temporary stay on the Bureau of Land Management's (BLM) approval for the Townsite Data Center, a proposed 80-acre artificial intelligence data center near Boulder City, Nevada. This decision, celebrated by environmental groups like the Sierra Club and the Center for Biological Diversity (CBD), effectively halts construction of what would be the first data center on US public lands.
The board ruled that the environmental groups and the local government of Boulder City were "likely to prevail" in their argument that the BLM had not conducted a legally required environmental review specific to a data center, having instead approved the site based on a review for a solar power plant. Patrick Donnelly, Great Basin director at the CBD, stated the group was "thrilled that this data center has been stopped dead in its tracks," emphasizing the potential for "irreparable harm" including soil disruption and habitat loss for species like the Mojave desert tortoise, as well as increased electricity and water usage.
The Townsite project has been seen as a test case for the Trump administration's "AI Action Plan," which aims to identify public lands suitable for large-scale data centers. Despite community opposition, including protests and a vote by the Boulder City Planning Commission against adding data centers to its land management process, the BLM bypassed the city by approving the project on adjacent federal lands. City Attorney Brittany Walker and Olivia Tanager of the Sierra Club highlighted the importance of public participation and proper federal processes.
Residents like Brynn deLorimier expressed hope that this victory would protect neighboring communities, such as those near Silver Springs in Lyon County, Nevada, where multiple data center applications on public lands are also pending, leading to calls for a moratorium on new data center approvals.