Boulder City officials challenge federal land approval for data center project

Boulder City officials and residents are vehemently opposing a data center project planned by Skylar Energy Resources and Skylar Capital Management, which recently received approval from the U.S. Bureau of Land Management (BLM) to use federal land. The developer initially sought to build on city-owned land but withdrew its application after the BLM greenlit the use of federal property in late June, raising questions about local government's power over projects on federal land in Nevada.

The proposed data center is estimated to consume over three times the energy of Boulder City's entire existing load, with a peak demand of 167 MW, supported by both renewable sources and 167 MW of biodiesel or natural gas generators. The city is challenging the BLM's approval, arguing that the federal agency's decision to allow an entirely new land use — shifting from a previously approved solar facility to a data center — was made without proper consultation with the city or public input. Representative Dina Titus (D-NV) also expressed frustration to the BLM regarding the lack of public consultation.

Residents, including organizer Janelle Sorenson, voiced anger and fear at a city council meeting, citing concerns about water usage, harm to wildlife, noise, air pollution, increased heat, and potential delays to Nevada's clean energy goals. Boulder City Mayor Joe Hardy highlighted the city's lost revenue, as the project would not contribute the estimated $2.3 million annually in leases and taxes that it would have on city land. The matter will now proceed to the Interior Board of Land Appeals, with a potential for further appeal in federal court.