The BLM Is Asking to Undo Its Own Approval of the Boulder City Data Center

by Ryan Rose

What Happened

On Monday, Sept. 21, 2026, attorneys for the BLM filed new documents with the Interior Board of Land Appeals. That board is part of the U.S. Department of the Interior, and it hears appeals of decisions made by agencies like the BLM. KTNV 13 reported on the filing the next day, Sept. 22.

In the filing, the BLM asked the board to set aside the agency's own decision to approve a right-of-way amendment for a company called Townsite Solar 2 LLC. In plain terms, a right-of-way is permission to use a piece of federal land for a certain purpose. The BLM said it wants the approval set aside so it can do "additional review of this application." It also asked the board to vacate the decision under appeal and send the case back to the BLM "for further action." The legal word for sending a case back is "remand."

According to the filing, Townsite Solar 2 did not oppose the BLM's request. That means the company that wants to build the data center is not fighting the agency on this step.

Boulder City is a different story. A city spokesperson sent KTNV 13 a statement that lays out the city's position. The city said it "is not against allowing additional environmental review" for the Townsite Solar 2 data center. What it opposes is remanding the decision to the BLM "at this time," because there are still pending legal questions properly before the appeals board.

The city also made two more points in its statement. First, it said nothing in the BLM's motion commits the agency to do an environmental assessment, to involve the public, or to name the city as a cooperating agency. Second, it said approving the BLM's request would lift the stay that is currently in place. That stay is the pause that has blocked the project since early September. The city said its full reasoning will be laid out in its formal opposition, which is due Oct. 5, 2026.

So the city is not asking for less review. It is worried that sending the case back without any promises could end the current pause and leave the city with no guaranteed seat at the table.

If that sounds backwards, think of it this way. Right now, the project is on hold while an independent board reviews the case. Boulder City helped win that hold. If the case goes back to the BLM, the hold goes away, and the same agency that approved the project in the first place would decide what its next review looks like. The city wants firm promises about public input and a real environmental study before it gives up the protection it already has.

Boulder City residents gathered to discuss appealing the BLM-approved data center planned for federal land in the Eldorado Valley

Why It Matters to Las Vegas Residents

At first glance, this might look like a fight that only matters to Boulder City. It is bigger than that. The land around the Las Vegas Valley is mostly federal land managed by agencies like the BLM. When a city says no to a project inside its limits, and the same project can move to federal land right next door, that changes how much say local residents really have.

That is exactly what Boulder City residents say happened here. The developer first tried to build on city land. After strong public pushback, it withdrew that application. Then it went to the BLM and got permission to use a federal parcel next door instead. At a July council meeting, one resident told the council the decision "was taken out of our hands." That feeling is the heart of this story.

There are also practical questions that affect every household in Southern Nevada. Data centers use a lot of power and, depending on how they are cooled, can use a lot of water. In a desert valley that already watches every drop from Lake Mead, those questions matter to renters and homeowners alike. Nevada leaders are paying attention. Earlier this month, Gov. Joe Lombardo signed an executive order that puts new conditions on data centers that want state tax breaks. Under that order, those developers must pay the Local School Support Tax in full and agree to a community support commitment. The governor's office says that at a minimum, developers must meet local water standards, cover the cost of serving the facility without passing it on to ratepayers, and make sure the project does not strain the power grid during emergencies.

Public opinion is shifting, too. A Pew Research survey published Sept. 22 found that 54 percent of Americans now say data centers are mostly bad for the environment, up from 39 percent in January. The same survey found that 60 percent of Americans would not be comfortable with a new data center operating in their area.

For Boulder City in particular, this is about the town's identity. Boulder City is known for its small-town feel and its slow, careful approach to growth. Residents have made it clear they want a voice in what gets built on the edge of town. Whatever the appeals board decides will show how much that voice counts when the land belongs to the federal government.

Background and History

This fight has been building all summer. Here is how we got here, step by step.

In 2023, the BLM granted Townsite Solar 2 a right-of-way on federal land outside Boulder City. That permit allowed the company to build a solar power plant with a battery storage system. To meet the rules of the National Environmental Policy Act, known as NEPA, the BLM studied the possible environmental effects of that solar project at the time.

Later, Townsite Solar 2 planned a data center on a parcel of land near Interstate 11 and U.S. 95. The Boulder City Planning Commission rejected that proposal after hours of public opposition. The company then withdrew its application because of public backlash and concerns from city officials.

Next, the company went back to the BLM. It asked to change its 2023 solar right-of-way so it could build a data center on that federal site instead of a power plant. The new plan included computer servers, network equipment, and a battery storage system twice the size of the one planned for the solar plant. On June 26, 2026, the BLM approved the change.

Boulder City pushed back fast. On Tuesday, July 14, the Boulder City Council voted unanimously to appeal the BLM's decision. Dozens of residents spoke during public comment, and some protested outside before the meeting.

Then, on Tuesday, Sept. 1, the Interior Board of Land Appeals issued a stay, which paused the BLM's plans. The ruling favored Boulder City and environmental groups. The board found that the BLM "did not study the effects of the data center project in a new or revised EA," which stands for environmental assessment. Instead, the BLM had decided the data center was "essentially like" the solar plant. The board disagreed and said the two projects are not "substantially the same."

Just a few weeks later, the BLM filed its request to set aside its own approval. According to the Las Vegas Review-Journal reporting that GovTech republished on Sept. 24, the same company behind the Boulder City project also just withdrew a separate data center and natural gas plant plan on BLM land near Henderson. You can read more about that in our related story linked at the top of this page.

Rows of solar panels on open Nevada desert, the kind of project the Eldorado Valley site outside Boulder City was first approved for in 2023

What Happens Next

The next date to circle is Oct. 5, 2026. That is when Boulder City's formal opposition to the BLM's request is due. The city says that filing will lay out its full reasoning. After that, the Interior Board of Land Appeals will decide whether to grant the BLM's request, deny it, or handle it some other way. There is no public date yet for that decision.

If the board sends the case back to the BLM, the agency would do the "additional review" it asked for. The big open question is what that review looks like. Boulder City's concern is that the BLM's motion does not promise a full environmental assessment, public input, or a formal role for the city. The city also says approving the request would lift the current stay. On the other hand, if the board keeps the case, the appeal and the legal questions in front of it would move forward, and the pause would stay in place for now.

There is also action in Congress. Rep. Dina Titus introduced the Public Lands Accountability Act the week before the BLM's filing. The bill would stop federal agencies from amending existing BLM right-of-way permits to allow data centers without going through a new environmental permitting process. It would also require the BLM to consider how data center projects affect regional water supplies. A bill being introduced is only the first step, and it would need to pass both the House and the Senate to become law.

At the state level, lawmakers are also looking at Nevada's data center tax breaks ahead of the next legislative session. Some want to scale them back. Others want to keep them in place with stricter rules on water and the power grid. Either way, data centers will be a big topic in Carson City.

This is not just a Nevada issue, either. KTNV reported that federal officials are weighing at least 12 data center and related proposals on federal public lands across six states, with at least three of them in Nevada. The Boulder City case is one of the first of its kind, and many people are watching how it plays out.

To keep it simple, here are the likely paths from here. The board could grant the BLM's request, which would end the current appeal, lift the stay, and send the project back to the BLM for more review. The board could deny the request, which would keep the stay in place and let the appeal move forward on the legal questions Boulder City raised. Or the board could handle the request in some other way that it decides is fair to both sides. Until the board rules, the project stays paused.

Ryan's Take

I talk with buyers every week who love Boulder City for one reason: it feels different from the rest of the valley. It is quiet, it is walkable, and the people there care a lot about how their town grows. So when a big industrial project lands on the edge of town without a local vote, I understand why residents are upset. This is not about being against progress. It is about who gets a say.

From a real estate point of view, the lesson here goes far beyond Boulder City. When you buy a home in Clark County, the empty desert behind your neighborhood might not stay empty. A lot of it is federal land, and as this case shows, the rules for what can go there are not always the same as city zoning. I always tell my clients to look past the property lines. Find out who owns the land nearby and what has been approved or proposed. Right now, I would not tell anyone to panic about this project, because it is paused and the outcome is still open. But it is a great reminder to do your homework before you buy, and to stay involved after you move in.

A data center sign shown during KTNV 13 coverage of the Boulder City Council's unanimous vote to appeal the BLM approval

What You Can Do

First, watch the calendar. Boulder City's formal opposition is due Oct. 5, 2026, and the appeals board's decision will come after that. Local news outlets like KTNV 13 have covered each step of this case, so following their coverage is an easy way to stay current. You can also keep an eye on Boulder City Council agendas, since the council has been the city's main voice in this fight.

Second, if you have an opinion about the federal bill, share it. The Public Lands Accountability Act was introduced by Rep. Dina Titus. You can contact your own member of Congress to say whether you support or oppose it. The same goes for state lawmakers as they look at data center tax breaks before the next session. Calm, clear comments from residents do get read.

Third, if you are buying or selling in Boulder City, Henderson, or anywhere near open desert, ask questions about nearby land. Find out whether it is city, county, or federal land, and look for any approved or proposed projects. If you are not sure where to start, I am happy to help you dig into it before you make a decision.

Finally, stay respectful and stay involved. This case shows that public comment and local action can make a real difference. The Boulder City residents who spoke up this summer are a big reason this project is paused today.