A legal shortcut greenlit a data center on public land — and shut the public out
A data center project on federal land in Boulder City, Nevada, was approved through a legal shortcut, allowing the developer to bypass a new environmental review under a Trump administration executive order. This decision has sparked opposition from Boulder City officials and residents, leading the city to file an appeal with the Interior Department. The project highlights concerns over public land use, environmental scrutiny, and local revenue.
A legal maneuver utilizing an existing environmental review for a solar farm has allowed Townsite Solar 2, a subsidiary of a Texas-based hedge fund, to secure approval for a data center on federally owned land in Boulder City, Nevada, without new public scrutiny or an additional environmental review. This decision, approved by the Bureau of Land Management (BLM) under a Trump administration executive order aimed at speeding up data center permitting, has been called an "extraordinary and liberal interpretation of existing law" by former BLM official Mike Ford.
The approval process has incensed Boulder City residents and officials. Residents express concerns about air pollution from backup generators and heat emissions, while city officials are primarily focused on the significant revenue loss from not having a city lease, estimated at $2.3 million annually, compared to the $1,207.67 the developer paid the BLM in 2023. Boulder City has unanimously voted to file an appeal with the Interior Department's Board of Land Appeals, seeking a stay to halt development while an administrative law judge reviews the case.
The developer has stated plans to use an air-cooled system for the data center, complying with the Southern Nevada Water Authority's ban on evaporative cooling, requiring a one-time fill of 400,000 gallons of purified water. However, data centers demand massive amounts of power, with this facility potentially accounting for 64% of NV Energy's sales by 2046; the developer plans to purchase energy from outside Nevada. Experts like Patrick Donnelly of the Center for Biological Diversity are skeptical of the appeal's immediate success but warn that the BLM's use of a "determination of National Environmental Policy Act adequacy" (DNA) sets a concerning precedent for future data center developments on public lands.