Las Vegas Rep. Dina Titus asks Gov. Lombardo to pause tax abatements for data centers on federal land near Boulder City
U.S. Rep. Dina Titus is urging Nevada Gov. Joe Lombardo to pause state tax abatements for data center projects on federal land, citing a proposed project near Boulder City. She raised concerns about the project's impact on water resources, extreme heat, and grid resilience, and questioned the process by which Townsite Solar 2, LLC's permit was amended without adequate community input or environmental analysis.
U.S. Rep. Dina Titus has urged Nevada Governor Joe Lombardo to temporarily suspend state tax abatements for data center projects developed on federal land until the 2027 Nevada Legislature convenes to review the issue. In a letter sent Thursday, the Las Vegas Democrat highlighted concerns from Boulder City residents regarding a proposed data center's potential strain on water resources, its contribution to extreme heat, and its impact on the region's grid resilience.
Titus specifically cited an approval by the Bureau of Land Management's (BLM) Las Vegas Field Office on June 26, which amended an existing right-of-way grant for Townsite Solar 2, LLC. The original 2023 grant was for a 19-megawatt solar facility, but the revised permit now allows the company to construct and operate a data center on the same 80-acre federal property adjacent to Boulder City.
The Congresswoman expressed her concern that the BLM approved this amendment "without community input or adequate environmental analysis." She also questioned the continued applicability of state renewable energy tax breaks for a project that transitioned from solar generation to a data center, noting a 2024 approval by the Governor's Office of Energy for a partial tax rebate totaling an estimated $24.3 million over 20 years.
Titus requested responses by August 10, asking for clarity on discussions between the Lombardo administration and Townsite Solar 2 regarding abatements, the project's eligibility, and a commitment from the Governor to withhold approval of data center tax rebates for similar projects on BLM land until legislative review and to ensure a transparent approval process with public input for future projects.