Federal Board Halts First US Public Land Data Center in Nevada
On September 1, the Interior Board of Land Appeals issued a stay halting construction on a 167-megawatt hyperscale data center near Boulder City, Nevada. The administrative panel found that the Bureau of Land Management likely violated the National Environmental Policy Act by approving the project without a site-specific environmental review, instead recycling a 2023 review intended for a solar power plant.
The Legal Battle Over Public Land Development
The Townsite data center project stands as the first facility of its kind proposed for United States public land. However, the regulatory shortcut taken by federal land managers triggered an immediate legal challenge from conservation groups and municipal residents.
The Interior Board of Land Appeals ruled that the appellants—including the Center for Biological Diversity, the Sierra Club’s Toiyabe Chapter, and local Boulder City residents—were likely to succeed on the merits of their appeal. Interior Department Administrative Judge David Gunter wrote in the written order that a solar farm and a data center do not constitute substantially the same land use, invalidating the Bureau of Land Management’s decision to carry over the earlier environmental assessment.
“We’re thrilled that this data center has been stopped dead in its tracks,” said Patrick Donnelly, Great Basin director at the Center for Biological Diversity, in a public statement. “The Trump administration is pulling out all the stops to let tech companies build massive data centers on our public lands. This tremendous victory proves communities have the power to fight back and win.”
Community Concerns and Environmental Impacts
Local opposition in Boulder City centered on the heavy resource demands and habitat disruption associated with hyperscale computing facilities. Residents and environmental advocates raised alarms regarding the project’s projected electricity and water consumption in an arid region, alongside potential habitat loss for the Mojave desert tortoise, a species protected under the Endangered Species Act.
“The people of Boulder City have made clear that they do not want a data center on public lands, and this ruling gives their voices the weight they deserve.”
For municipal leaders and regional planners managing the intersection of rapid technological expansion and municipal zoning, regulatory compliance remains a complex hurdle. Navigating federal land stipulations requires deep administrative diligence, often necessitating specialized environmental legal counsel to review administrative records and agency findings.
Local resident Brynn deLorimier, who joined the appeal, emphasized the broader implications of the dispute for communities nationwide. “We’re also grateful to the Interior Board of Land Appeals for recognizing that this case matters far beyond Boulder City and could set an important precedent for public lands in Nevada and across the country,” deLorimier stated.
Next Steps for the Expedited Appeal
The stay issued by the board temporarily freezes all construction activity while the expedited appeal proceeds through the Department of the Interior’s appellate body. Townsite Solar 2, LLC, the project developer backed by Houston-based investment firm Skylar Capital Management, acknowledged the administrative order.
A representative for Townsite Solar 2 stated that the company is aware of the stay order and respects the administrative process, adding that it will continue coordinating with federal regulators, Boulder City officials, and community stakeholders as the project advances, as reported by The Nevada Independent. Meanwhile, the Bureau of Land Management has not yet issued a public response to the ruling.