A Developer Withdrew Its 1,000-Megawatt Data Center and Gas Plant Plan Near Henderson

by Ryan Rose

What Happened

Skylar Capital Opportunities had applied to build what is called a hyperscale data center. That is a very large building, or group of buildings, full of computer servers. These sites store data and run the computing power behind cloud services and artificial intelligence. They also use a huge amount of electricity. To help power this one, the plan included a natural gas plant on the same site.

The land sits on BLM property near the southeastern tip of Henderson. According to the Las Vegas Review-Journal, it was a stretch of desert near the Paradise Hills community, only a few miles from a master-planned community at the base of the mountains. The Sierra Club got a copy of the application and shared it with the Review-Journal. That is how the public learned the details.

The numbers were big. The project was listed at 1,000 megawatts. NV Energy says that much power is enough for 700,000 to 1 million homes. That would have made it one of the most energy-hungry data centers in Nevada. The application, filed in November, said the project would cost between $1.5 billion and $2 billion to build. The company said it planned to pay for it with investment capital, tax equity and debt.

In that application, the developer also said being close to existing development was a plus. It said extra environmental impacts were expected to be minimal. Many nearby residents likely saw that closeness very differently.

To put 1,000 megawatts in perspective, think about your own house. On a hot August afternoon, your air conditioner is the biggest thing pulling power in your home. Now picture hundreds of thousands of homes all running at once. That is roughly the kind of load this one site could have drawn, around the clock, every day of the year. Data centers do not take summer off or go quiet at night.

Then on Thursday morning, the company put out a statement. It said it had talked with the city and the BLM. It decided to pull its application "due to the city planned urban development efforts in same area." In plain English, Henderson has its own plans for that part of town, and the data center did not fit them.

Power lines crossing open desert with mountains in the distance, similar to the federal land at the southeastern edge of Henderson

Why It Matters to Las Vegas Residents

Start with the homeowners closest to the site. People who live in and around Paradise Hills and the newer communities on Henderson's southern edge bought there for the views, the quiet and the open desert. A large power plant and a server campus a few miles away would have changed how that area looks and feels. It would have brought construction traffic for years. It would also have raised questions about noise, lighting and air quality. Now those questions are off the table, at least for this project.

Next, think about power. A 1,000-megawatt project is a massive load. NV Energy serves the whole valley, and every big new user adds to the demand the utility has to plan for. Nevada law says utilities must get half of their energy from renewable sources by 2030. NV Energy has already said that data center demand will make it miss that goal. When a project this large drops out, it takes a big chunk of that future demand with it.

Third, there is land. Henderson is Nevada's second-largest city, and it keeps growing. Most of the open land around the valley is federal land. When a piece of it opens up, the question is always what goes there. Homes? Jobs? Parks? Industry? The developer's statement suggests Henderson has urban development plans for this area. That hints the city sees homes, shops or other city uses there, not a power plant.

Finally, this story ties into the bigger data center debate across Clark County. People worry about water use in a desert, the strain on the power grid, and what these projects give back to the community. Others point to the jobs and investment they bring. Wherever you land, it helps to know what is being proposed near your home. This project only came to light because an application was shared with a reporter. That is a good reminder to pay attention to what is filed near you.

To be fair, there are two sides to every big project like this. Data centers can bring construction jobs, some long-term jobs and new tax revenue. Supporters say they help diversify an economy that leans heavily on tourism. Critics say the number of permanent jobs is small for the amount of land, water and power used. Both points come up every time a new project is proposed in the valley. In this case, the developer walked away before that debate ever reached a public hearing in Henderson.

Background and History

This is not the first time Skylar Capital Opportunities has made local news. The same company is behind the data center planned on federal land near Boulder City. That project has been contested. The Review-Journal reports it has been put on hold by an administrative judge while an appeal from city officials and environmental groups is processed. If it goes forward, it may become the first data center built on BLM land anywhere in the country.

The Boulder City project started as something else. The land was approved for a solar and battery project in 2023 through a company called Townsite Solar 2. Later, the BLM approved a change to that right-of-way to allow a data center. The BLM had tried to use the earlier environmental review for the solar project to cover the data center. This month, the BLM asked a judge to let it do more review. KTNV reported that the BLM filed a request on Sept. 21 asking the Interior Board of Land Appeals to set aside its own approval. We covered that in detail in our post, BLM Revisits Boulder City Data Center.

An industrial power plant lit up at night, the type of natural gas facility that was part of the withdrawn Henderson data center plan

Data centers are spreading across Nevada. In Northern Nevada, energy regulators approved two temporary gas plants this month to power data centers there. Here in Southern Nevada, Switch has filed early plans for a data center campus of about 175.8 acres at the Apex Industrial Park in North Las Vegas, near Apex Power Parkway and US-93. You can read about that in Switch Plans 175-Acre Apex Data Center.

Why are these projects coming here? Nevada has a lot of open land, and much of it is managed by the federal government. Companies see space to build big and room to add power. But the valley also has limits. Water is scarce. Summers are brutally hot, which means cooling costs are high. And the power grid has to serve a fast-growing population of families, too. Those limits are why every new proposal gets a hard look.

Henderson's own growth is the other half of this story. Over the past couple of decades, the city has pushed south and east with new master-planned communities, schools and shopping centers. Neighborhoods that once felt far out are now surrounded by rooftops. As that growth continues, the land at the city's edges becomes more valuable for homes and community uses. That makes a heavy industrial project a harder fit, and it may help explain the developer's decision.

Natural gas is part of the story, too. Gas plants give off less carbon dioxide than coal or oil, but gas is not a renewable source. Pairing a new gas plant with a data center is one way developers try to secure their own power. It is also one reason these plans draw attention from environmental groups like the Sierra Club, which is how this application reached the press.

What Happens Next

For this specific project, the application has been withdrawn. That means the data center and gas plant near Paradise Hills are not moving forward. The company has not said it plans to refile somewhere else in Henderson. If that changes, it would require a new application.

It is worth knowing the difference between a withdrawn plan and a denied one. A denial would mean a government body reviewed the project and said no. A withdrawal means the developer chose to step back on its own before a final decision. In this case, the company said it made the choice after talking with the city and the BLM. So there was no vote and no formal ruling. The land simply goes back to being open, at least for now.

The bigger thing to watch is what Henderson does with that land. The developer's statement points to the city's planned urban development in the same area. The details of those plans have not been made public in the reporting so far. Over the next months and years, watch for city planning items, land sale notices and zoning hearings tied to Henderson's southeastern edge. Those will tell you whether this land becomes new neighborhoods, commercial space, parks or something else.

In Boulder City, the fight goes on. The BLM has asked to take another look at its approval, and the developer does not oppose that request. The case is still in front of federal land appeals officials. Keep an eye on that ruling, because it could shape how data centers on federal land are handled across Nevada. Meanwhile, the Switch campus in North Las Vegas is still in the early filing stage. And statewide, the power question is not going away. NV Energy will keep planning for new demand, and state regulators will keep ruling on how that demand gets met.

Ryan's Take

I talk with Henderson buyers every week, and one of the first things they ask about is what could get built nearby. Open desert behind a neighborhood is a big selling point. But buyers also know open land does not stay open forever. This story is a good example of why it pays to know who owns that land and what is being proposed. A 1,000-megawatt power user a few miles from home is the kind of thing that can change how a buyer feels about a street, even if it never gets built.

For homeowners near Paradise Hills and the southern edge of Henderson, I see this as good news for peace of mind. The city appears to have its own vision for that area, and it looks like homes and community uses, not heavy industry. That kind of clarity helps values hold steady and helps buyers feel confident. For the rest of the valley, the lesson is simple. Data centers are coming to Southern Nevada in one form or another. Where they land matters a lot to the people who live next door. Stay informed, and do not assume a big project is a done deal, or a dead one, until the final filings say so.

Aerial view of a desert neighborhood with rows of homes, like the communities on the southern edge of Henderson near the withdrawn project site

What You Can Do

If you live in Henderson, start by following your city. Henderson City Council and Planning Commission meetings are open to the public, and agendas are posted ahead of time on the City of Henderson website. You can attend in person, watch online or send in written comments. When plans for the southeastern edge of the city come up, that is your chance to be heard. You can also sign up for city news updates so you do not miss notices about land use near you.

Next, learn about the federal land around you. The BLM manages much of the open desert around the valley. Its projects often go through public review periods where anyone can comment. Search the BLM's national project planning site for the Southern Nevada District to see what is proposed near your neighborhood. It is not flashy reading, but it is where early details often show up first.

If you are buying or selling a home near open land, ask questions before you sign. Find out who owns the land behind or near the home, and whether anything has been filed for it. Check the city's zoning maps. Ask about planned roads, schools and commercial areas. A good local agent should be able to help you dig into this, so there are no surprises after closing.

Last, stay plugged in to the bigger picture. Data center proposals are popping up in Boulder City, North Las Vegas and now Henderson. Each one is handled by a different city or agency, with its own meetings and deadlines. Local news coverage is often the first place these plans show up, just like this one did. Following a few trusted local outlets, and checking in on your city's planning pages once a month, is an easy way to stay ahead of what might be coming near you.