Nevada city dubs itself a test case for data centers on federal lands near communities
Boulder City, Nevada, officials are actively opposing the U.S. Bureau of Land Management's approval of a data center project on federal land by Townsite Solar 2, LLC, located adjacent to the city. The city plans to appeal the decision and seek a 'stay,' arguing that the federal government bypassed local land use codes and environmental reviews. This case is seen as a test against federal overreach in data center development.
Boulder City, Nevada, officials are strongly opposing the U.S. Bureau of Land Management's (BLM) recent approval for the construction of the Townsite Data Center on an 81-acre plot of BLM land in the Eldorado Valley desert, adjacent to the city. The builder, Houston-based Townsite Solar 2, LLC, originally received federal approval in 2023 for a solar and battery storage facility but amended its application in 2025 to include a data center. City officials intend to appeal the BLM's decision and submit a 'stay' to halt the project by July 27.
City Attorney Brittany Walker stated that the BLM did not consult Boulder City leaders or work with them on the approval, despite the project's magnitude. She framed the city's opposition as a national 'test case' against potential federal overreach, referencing President Donald Trump's Executive Order 14318, which aims to streamline federal permitting for data center infrastructure. Walker also questioned the BLM's apparent circumvention of typical environmental studies required by the National Environmental Policy Act, noting that the agency simply deemed the data center's impact similar to a solar facility.
Local leaders, including Councilman Steve Walton, voiced their disdain at a city council meeting, calling the federal approval 'absolutely ridiculous.' Residents expressed concerns over the data center's potential environmental impacts and increased water consumption in the drought-stricken area. While Townsite Solar has a history as a 'good business partner' with existing solar facilities, the company did not respond to interview requests regarding this new data center project.