Boulder City, Nevada, officials and residents are challenging a recent federal decision that approved the construction of a data center on public land despite strong local opposition. The project, led by the Houston-based developer Townsite Solar 2, a subsidiary of Skylar Capital Management, was originally proposed for a city lease but faced a 6-1 rejection by the Boulder City Planning Commission in May due to resident protests. The federal Bureau of Land Management (BLM) subsequently authorized the project on federally owned land, a move Boulder City officials described as a surprise decision made without local consultation or public comment.

The city will lose an estimated $2.3 million in annual revenue because the project will now proceed on federal land rather than city-owned property. In response to the approval, the Boulder City Council voted unanimously on July 14, 2026, to file an official appeal letter. City Attorney Brittany Walker stated the BLM failed to follow standard interagency collaboration procedures or federal land use laws. Councilmember Steve Walton criticized the agency's reliance on environmental reviews originally intended for a solar energy and battery storage project, arguing that a data center represents an entirely different class of land use.

Concerns from residents and officials center on the high energy demands of data centers, which house critical infrastructure for cloud storage and artificial intelligence. The state utility faces challenges meeting 2030 clean energy targets, and the Southern Nevada Water Authority prohibits the use of water-intensive evaporative cooling for these facilities, forcing developers to rely on power-hungry cooling methods. Residents cited additional fears regarding air pollution from backup diesel generators, noise, heat emissions, and potential impacts on home equity.

The city is now considering broader policy responses to mitigate future impacts. Residents and former officials have called for a moratorium on data center developments, similar to measures enacted in Reno in May and currently under consideration in Nye County and Henderson. Boulder City Mayor Joe Hardy confirmed the city is reviewing environmental policy recommendations from the Sierra Club regarding backup generator emissions and water usage. Voters are scheduled to address the issue of data center development on city-owned land in the Eldorado Valley during the November 2026 ballot.

Boulder City, Nevada, officials and residents are challenging a recent federal decision that approved the construction of a data center on public land despite strong local opposition. The project, led by the Houston-based developer Townsite Solar 2, a subsidiary of Skylar Capital Management, was originally proposed for a city lease but faced a 6-1 rejection by the Boulder City Planning Commission in May due to resident protests. The federal Bureau of Land Management (BLM) subsequently authorized the project on federally owned land, a move Boulder City officials described as a surprise decision made without local consultation or public comment.

The city will lose an estimated $2.3 million in annual revenue because the project will now proceed on federal land rather than city-owned property. In response to the approval, the Boulder City Council voted unanimously on July 14, 2026, to file an official appeal letter. City Attorney Brittany Walker stated the BLM failed to follow standard interagency collaboration procedures or federal land use laws. Councilmember Steve Walton criticized the agency's reliance on environmental reviews originally intended for a solar energy and battery storage project, arguing that a data center represents an entirely different class of land use.

Concerns from residents and officials center on the high energy demands of data centers, which house critical infrastructure for cloud storage and artificial intelligence. The state utility faces challenges meeting 2030 clean energy targets, and the Southern Nevada Water Authority prohibits the use of water-intensive evaporative cooling for these facilities, forcing developers to rely on power-hungry cooling methods. Residents cited additional fears regarding air pollution from backup diesel generators, noise, heat emissions, and potential impacts on home equity.

The city is now considering broader policy responses to mitigate future impacts. Residents and former officials have called for a moratorium on data center developments, similar to measures enacted in Reno in May and currently under consideration in Nye County and Henderson. Boulder City Mayor Joe Hardy confirmed the city is reviewing environmental policy recommendations from the Sierra Club regarding backup generator emissions and water usage. Voters are scheduled to address the issue of data center development on city-owned land in the Eldorado Valley during the November 2026 ballot.