Nevada city dubs itself a test case for data centers on federal lands near communities
Officials in Boulder City, Nevada, are appealing a federal decision by the U.S. Bureau of Land Management to approve a data center project on 81 acres of federal land adjacent to the city. The city views this as a test case against federal overstepping in local land use, citing a lack of consultation and potential environmental and water impacts. An appeal and a 'stay' are planned to prevent the project by July 27.
Boulder City, Nevada, has declared itself a national test case against the federal government's push to expand data centers, following the U.S. Bureau of Land Management's (BLM) approval of the Townsite Data Center. On June 26, the BLM authorized the construction of the data center on an 81-acre parcel of BLM land in the Eldorado Valley desert, adjacent to Boulder City.
The developer, Houston-based Townsite Solar 2, LLC, had initially secured federal approval in 2023 for a solar and battery storage facility at the site. In 2025, the company amended its application to include a data center. Boulder City officials, including City Attorney Brittany Walker, expressed strong opposition, stating that the BLM never consulted with them regarding this change despite requirements for local jurisdiction involvement on projects of this scale.
Walker specifically referenced President Donald Trump's Executive Order 14318, "Accelerating Federal Permitting of Data Center Infrastructure," suggesting the federal government circumvented typical processes. Residents and council members, including Steve Walton, raised concerns about the data center's environmental impact and increased water consumption in the drought-stricken region. The Boulder City Council has voted against allowing the data center to proceed without a new application process that includes provisions for its specific use, and is preparing to submit an appeal and a 'stay' by July 27 to halt the project.