BLM to reconsider Boulder City data center application on federal land

An appeals board is allowing the Bureau of Land Management to conduct further review of a proposed data center on federal land in Boulder City, weeks after it had determined the original approval likely violated federal law.

The BLM requested earlier this month that the board set aside its previous approval of the project. In a move protested by conservationists throughout the West, the BLM used a first-of-its-kind maneuver for a data center approval, transferring a federally mandated environmental review for a solar project to the data center.

The most recent order, signed by Interior Board of Land Appeals Administrative Judges David Gunter and Clifford Stevens on Thursday, was initially against the wishes of Boulder City. Its city attorney argued that granting the BLM’s motion would not necessarily ensure that a proper environmental assessment would take place.

“If Boulder City believes BLM will develop new, unlawful regulatory standards in its review of Townsite’s application, it may seek review on that basis if and when BLM approves that application,” the judges wrote. “There is no need for the board to supervise BLM in its conduct of an ongoing administrative proceeding — in which the bureau has not yet made any decision — when such opportunities for review will be available once a decision has been made.”

The Thursday order further affirms the judges’ opinion that the projects were not “substantially the same,” as BLM officials had concluded, and that they were likely to find that the transfer violated the National Environmental Policy Act. Gunter had used that justification to grant a request from the city and environmental groups to halt construction in September.

What happened in Boulder City prompted Rep. Dina Titus, D-Nev., to introduce a bill that would require full environmental reviews before a data center can be sited on public land.

The BLM declined to comment, citing its policy of refraining from discussing pending litigation.

Boulder City spokeswoman Lisa LaPlante said in a Monday statement that officials welcomed the decision and are hopeful for the future.

“It remains the city’s position that the BLM must follow federal law in approving of such a use and provide the city and the public with meaningful opportunity to be involved in if, how, when, where and why these facilities are authorized,” LaPlante said.

‘We’re not backing down an inch’

The outcry associated with the Townsite Solar 2 data center in Boulder City has been a reflection of voters’ increasingly hostile sentiment toward data centers this election cycle. A recent poll found more than half of Nevada voters across party lines find themselves opposed to large, hyperscale data center development in the state.

Many voters have questions about how data centers may affect the water supply and where they will source their power. Other concerns run the gamut, from siting, noise pollution, air pollution from backup generators and more.

Townsite Solar 2, to comply with the Southern Nevada Water Authority’s ban on evaporative cooling, had plans to either use air-cooling or a closed-loop cooling system that only needs to be filled up once. Developers have said they did not plan to source power from Boulder City’s municipally owned utility.

Representatives for Townsite Solar 2, associated with the Houston-based company Skylar Capital Management, said in a Monday statement that the developer welcomes the opportunity for additional review to resolve concerns that came up during the appeal process.

The debate in Boulder City has brought the issue of whether federal land should be used for the facilities to the forefront, as well. The same parent company had proposed a hyperscale data center and natural gas plant near a master-planned community in Henderson, but told the Review-Journal late last month that it was no longer pursuing it.

In a statement, Patrick Donnelly, Great Basin director at the nonprofit Center for Biological Diversity, said his organization celebrates the recent ruling. His nonprofit and the Sierra Club did not protest the BLM’s inquiry for the board to set aside the approval.

“I’m pleased that our legal action resulted in this disastrous project approval being thrown out, but this isn’t over and we’re not backing down an inch,” Donnelly said. “There should be no data centers on public lands anywhere, and the fight will continue in Boulder City.”

Contact Alan Halaly at ahalaly@reviewjournal.com. Follow @AlanHalaly on X.