Data center project in Henderson no longer moving forward
A proposed data center project in Henderson, Nevada, that received conditional approval last year, is no longer moving forward. The property owner is now looking to sell the land for traditional industrial development instead of the planned data center complex. Separately, the Henderson City Council is preparing to adopt new regulations requiring development agreements for future data center proposals.
A data center project approved by the Henderson Planning Commission last year is no longer proceeding, according to city officials and a co-owner of the property. Trammell Crow Co., which had secured a conditional use permit and design review in November for a five-building data center complex on a 157.3-acre parcel, is no longer involved. The property owner, Eldorado Hills LLC, informed the city in March that the development was halted.
Athena Eliades, co-owner of Eldorado Hills LLC, stated that a potential deal with Trammell Crow fell through after her father's death. The land is now under contract with a new potential buyer for "traditional industrial development," with a closing expected by year-end, according to Lauren Willmore, Vice President of CBRE's Las Vegas office. The conditional use permit, which included conditions for water use and noise levels, remains active through 2030, but no new data center applications have been submitted for the site.
Concurrently, Henderson City Council members are moving to require new data center proposals to enter into negotiated development agreements, evaluating them on a case-by-case basis. This code change, set for an August 18 City Council meeting, will not apply to the Trammell Crow project as it was approved before the new regulations are adopted. The original proposal was classified as a speculative development with no identified "end user" technology company.