A federally-approved data center in Nevada is on hold, at least for now

A federally-approved data center in Nevada is on hold, at least for now

News ClipUtah Public Radio·Boulder City, Clark County, NV·9/10/2026

A federally approved data center project by Townsite Solar near Boulder City, Nevada, has been temporarily halted by the Interior Board of Land Appeals. The stay was issued after Boulder City and environmental groups argued that the Bureau of Land Management approved the project without proper environmental studies or public input. The judge noted concerns about potential noise and air pollution and suggested the appellants would likely prevail in requiring new environmental assessments.

environmentaloppositionlegalgovernmentzoning
Gov: Department of Interior, Bureau of Land Management, Interior Board of Land Appeals, Boulder City officials, Rep. Dina Titus

The Interior Board of Land Appeals has issued a temporary halt, or "stay," on a controversial data center project planned for public land near Boulder City, Nevada. The project, developed by Townsite Solar, which is owned by Skylar Capital Management, had previously received approval from the Bureau of Land Management (BLM) and was seen as a test case for data center developments on public lands.

Officials from neighboring Boulder City, along with environmental organizations including The Center for Biological Diversity, filed a complaint with the Department of the Interior. They alleged that the BLM granted approval for the data center without adequate environmental studies or sufficient public input, thereby violating the National Environmental Policy Act (NEPA). Judge David Gunter, with the land appeals board, indicated that the appellants were "likely to prevail" in their argument for new environmental assessments, specifically mentioning concerns about potential noise and air pollution.

Rep. Dina Titus, a Democrat representing the area, supported the decision, stating that the judge "ruled for transparency and public accountability" given the BLM's alleged misuse of an environmental impact statement for a solar farm to justify a data center. The stay will remain in effect until both parties submit legal briefs. This development is considered a significant precedent for the treatment of public lands in Nevada regarding data center infrastructure. Separately, Boulder City residents are slated to vote in November on a measure concerning changes to local zoning regulations.