Boulder City Challenges Federal Data Center Approval
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Articles
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The Topic

Boulder City, Nevada, is challenging the Bureau of Land Management’s June 26 approval of the proposed Townsite Data Center on an approximately 81-acre federal parcel in the Eldorado Valley. The project was amended from an earlier solar and battery proposal and would require up to 167 megawatts of power, while using closed-loop cooling intended to limit routine water consumption. The appeal centers on whether BLM could approve the substantially different facility without renewed environmental review or meaningful local consultation, with potential implications for future data centers on federal land.
First Article: 06/15/26
Latest Article: 07/28/26
Summary
- Boulder City’s council voted unanimously to appeal BLM’s June 26 approval and seek a stay.
- Townsite Solar 2 changed an approved solar-and-battery proposal into a data center with a stated peak demand of 167 megawatts.
- The project sits on federal land within or adjacent to Boulder City, limiting the city’s ability to apply local review and land-use controls.
- Officials and environmental groups question whether the earlier solar project’s environmental assessment can support the larger data center use.
- The proposed facility would use closed-loop, non-evaporative cooling; documents cite roughly 2,000 gallons of annual water use, plus larger construction and initial-fill needs.
- Boulder City estimates that moving the project off city-owned land could cost about $2.3 million annually in lease revenue and taxes.
- Residents and officials cite concerns about electricity demand, fire risk, noise, wildlife, air quality, heat, water, and effects on the town’s character.
History
The story now adds a broader regulatory and policy dimension: Boulder City’s appeal is paired with scrutiny from the Interior Board of Land Appeals, and the issue is increasingly framed as a test case for federal data center approvals on public land. It also tightens the factual dispute around the project’s water and local-control implications, including closed-loop cooling and reduced routine water use.
The story has shifted from a local Colorado Springs zoning dispute to a federal land-use fight over a much larger Nevada data center. Boulder City is now challenging BLM’s approval process, arguing the amended project bypassed renewed review and local input.
