The Federal Approval for the Boulder City Data Center Is Officially Gone, and BLM Has to Review It Again

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Boulder City Data Center Approved by BLM

The federal approval for the Townsite Solar 2 data center near Boulder City has been set aside. The Interior Board of Land Appeals granted the Bureau of Land Management's request to undo its own approval, so the BLM will now review the company's application again, and no new decision has been made.

For Boulder City residents who have been watching this project since early summer, that means the data center is back at square one. Construction was already on hold. Now the approval it was built on is gone, too.

The ruling does not kill the project for good. The developer can still pursue it through the BLM's new review. But it does reset the clock, and it gives Boulder City another chance to weigh in if the BLM approves the application again. Here is what happened, how we got here and what comes next.

What Happened

On Oct. 22, the Boulder City Review published "BLM to reconsider Boulder City data center application on federal land," by Alan Halaly of the Las Vegas Review-Journal. The story reports that the Interior Board of Land Appeals, often called the IBLA, signed an order granting the BLM's request to set aside its earlier approval of the data center. The order was signed by Administrative Judges David Gunter and Clifford Stevens.

The IBLA is part of the U.S. Department of the Interior. It hears appeals of decisions made by agencies like the BLM. Earlier, the BLM had asked the board to set aside its own approval so the agency could do more review. The board said yes. In the order, the judges wrote, "There is no need for the board to supervise BLM in its conduct of an ongoing administrative proceeding."

The judges also repeated a key finding from earlier in the case. They said the data center and the solar project whose environmental review it borrowed were not "substantially the same," as BLM officials had concluded. The Boulder City Review reports the judges also said the transfer likely violated the National Environmental Policy Act, known as NEPA. That federal law requires agencies to study the environmental effects of major projects on federal land.

The project is tied to Houston-based Skylar Capital Management. The Review-Journal described the BLM's approach as a "first-of-its-kind maneuver." Instead of doing a new environmental review for the data center, the BLM transferred a review that had been done for a solar project, Townsite Solar 2, on the same site. Conservationists across the West protested that move.

Boulder City objected to the BLM's request. According to the Boulder City Review, the city attorney argued that granting the motion would not necessarily ensure a proper environmental assessment. Even so, Boulder City spokeswoman Lisa LaPlante said in a statement that city officials "welcomed the decision" and are "hopeful for the future." She added, "It remains the city's position that the BLM must follow federal law in approving of such a use."

The environmental groups took different positions on this step. The Boulder City Review reports that the Center for Biological Diversity, through its Great Basin director Patrick Donnelly, has pursued legal action over the project. The Sierra Club, which was also involved in the case, did not protest the BLM's request to set aside the approval.

The BLM declined to comment, citing its policy on pending litigation.

Why It Matters to Las Vegas Residents

For Boulder City, this is a big deal. The city has been fighting this project for months, and its leaders have said all along that the BLM needed to follow federal environmental law. The approval being set aside means the BLM has to take another look before anything can be built.

Data centers are a hot topic across Southern Nevada, and much of the concern comes down to water and power. On water, the Boulder City Review reports that the project planned to use either air cooling or a closed-loop system that only needs to be filled once. That is because the Southern Nevada Water Authority bans evaporative cooling for these projects. On power, the developers said they did not plan to get electricity from Boulder City's city-owned utility. Earlier this summer, KUNC reported that the city said the proposed load was three times Boulder City's own electric load, while the developer said it would power the project with its own renewable sources.

The two sides have also disagreed about land use. KUNC reported in July that the city says the 80-acre parcel is zoned "Energy Resource," where data centers are not permitted. The developer, for its part, told KUNC it would fund a city recycling effort to return water to Lake Mead and was aiming for "water-positive outcomes." It also said it would create an Energy Fund to lower electricity costs.

Many residents also care about Boulder City's small-town feel. The town is known for slow growth and has long been protective of the land around it. A large industrial project on its doorstep is a real change, even if it sits on federal land.

For the rest of the valley, this case is worth watching because federal land surrounds so much of Clark County. When a project struggles with a local government, there can be a federal path through the BLM. This case tests how far that path can go and what kind of environmental review it requires. The answer could shape future projects near Henderson, North Las Vegas and other parts of the valley.

It also connects to a nearby project. The Boulder City Review reports that the same parent company had proposed a hyperscale data center and a natural gas plant near a master-planned community in Henderson. The company told the Review-Journal late last month that it is no longer pursuing that project.

Background and History

This fight has been building since summer. Here is the short version.

In 2023, the BLM granted Townsite Solar 2 LLC a right-of-way on federal land to build a solar plant with battery storage, according to KTNV 13. The BLM studied that solar project's environmental effects under NEPA at the time.

The company first tried to build a data center on a city-owned site. FOX5 reports it withdrew after "intense public pushback." The company then turned to the federal land. It asked the BLM to change its solar right-of-way so it could build a data center instead. KTNV reports the new plan included computer servers, network equipment and a battery storage system twice the size of the one planned for the solar plant. FOX5 described the site as 80 acres of BLM land. The BLM approved the change in a June 26 decision, according to KTNV.

The Boulder City Council voted unanimously to appeal that decision at its July 14 meeting. Environmental groups appealed as well. The Boulder City Review names the Center for Biological Diversity and the Sierra Club as part of the legal fight.

On Sept. 1, the IBLA issued a stay that paused the project, according to FOX5. The board found that the city and the environmental groups would likely succeed on their claims that the BLM's environmental analysis was "insufficient." The Boulder City Review reports that Judge Gunter granted the request from the city and environmental groups to halt construction, based on the finding that the two projects were not "substantially the same."

Then, on Monday, Sept. 21, the BLM asked the board to set aside its own approval so it could do "additional review" of the application, KTNV reported. Townsite Solar 2 did not oppose the request. Boulder City did. A city spokesperson told KTNV the city was "not against allowing additional environmental review," but said that "nothing in the BLM's motion to remand commits the BLM to conduct an environmental assessment." The board has now granted the BLM's request anyway.

What Happens Next

The BLM will now review Townsite Solar 2's application again. According to the Boulder City Review, the agency has not made a decision. No timeline has been announced, and the reporting does not describe a public comment process for the new review.

It helps to be clear about what "set aside" means here. The board did not rule that a data center can never be built on this land. It agreed to wipe out the BLM's June approval so the agency can take the application back and look at it again. The case returns to the BLM, and the developer's request is still on the table. What is gone is the approval that relied on the solar project's old environmental review.

Boulder City still has options. The judges noted that the city may seek review of any new BLM standards "if and when BLM approves that application." In plain terms, if the BLM approves the data center a second time, the city can challenge that new decision.

What to watch for next: any notice from the BLM about how it will conduct the new review, whether it does a full new environmental assessment, and whether it brings the public or the city into that process. Those were the exact points Boulder City raised when it opposed the BLM's request.

Ryan's Take

When people shop for a home, they look at the house, the street and the school. More and more, they also ask what could get built nearby. In Boulder City, that question matters a lot. People move there for the quiet, the views and the small-town pace. A large data center next to town would change how some buyers see the area, whether you think it is good or bad.

What I tell clients is simple: know what is planned around you, and know who decides. In most of the valley, that is the city or Clark County. But with so much federal land around us, the BLM can be part of the answer, too. This ruling does not settle anything for good. It means the process starts over. If you own in Boulder City or are thinking about buying there, it is worth keeping an eye on what the BLM does next. Projects like this take time, and the people who stay informed are the ones who are not surprised.

What You Can Do

Follow the local reporting. The Boulder City Review, KTNV 13 and FOX5 have covered each step of this case. Their stories are the fastest way to learn when the BLM moves.

Watch city meetings. Boulder City has been an active party in this case. City Council meetings are a good place to hear updates from city leaders and the city attorney, and to speak during public comment if you want to.

Learn the basics of BLM land. If you live in Clark County, a lot of the open land you see near your neighborhood is federal. Knowing that the BLM, not just the city or county, can make land decisions helps you understand what could change near you.

Ask before you buy. If you are looking at homes in Boulder City or any edge-of-town area, ask about nearby land and any pending projects. A good agent should help you find out what is planned and who controls the land.

Quick Answers

Is the Boulder City data center canceled? Not for good. The federal approval was set aside, and the BLM will review the application again. No new decision has been made.

Who made the ruling? The Interior Board of Land Appeals, part of the U.S. Department of the Interior. The order was signed by Administrative Judges David Gunter and Clifford Stevens.

Why was the approval a problem? The BLM used an environmental review done for a solar project instead of a new one for the data center. The judges found the two projects were not "substantially the same."

Can construction start now? Construction was halted in September. With the approval set aside, the project now depends on the outcome of the BLM's new review.

Who is behind the project? Townsite Solar 2, tied to Houston-based Skylar Capital Management.

Where is the site? On federal land near Boulder City, south of I-11 and west of U.S. 95.

Have questions about how this affects your home or neighborhood? Reach out to Ryan Rose or text/call 702-747-5921 anytime.

Ryan Rose | Real Broker, LLC | 702-747-5921 | ryan@rosehomeslv.com | rosehomeslv.com

Sources

Boulder City Review, "BLM to reconsider Boulder City data center application on federal land" (Alan Halaly, Las Vegas Review-Journal, Oct. 22, 2026; the IBLA order, city statement, cooling and power plans)

KTNV 13, "Bureau of Land Management asks court to revisit Boulder City data center approval" (September 2026; the BLM's request and the city's response)

KTNV 13, "Interior Department pauses BLM's plans for proposed Boulder City data center" (2023 right-of-way and the data center plan)

KTNV 13, "Boulder City council unanimously appeals BLM approval of data center planned for Eldorado Valley" (June 26 decision and the council's unanimous appeal)

FOX5 Vegas, "Federal board halts data center project near Boulder City" (Rachel Zalucki, Sept. 1, 2026; the stay and the 80-acre site)

KUNC, "This city said no to data centers, but the feds approved. Now the city is fighting back" (Yvette Fernandez, Mountain West News Bureau, July 30, 2026; power load and developer's power plan)