Environmental Groups and Boulder City Challenge Federal Data Center Approval

The Center for Biological Diversity, the Sierra Club, and the government of Boulder City filed administrative appeals and petitions for a stay to stop the construction of the Townsite Data Center on federal land in Nevada. The project, developed by Skylar Capital Management through its subsidiary Townsite Solar 2, is the first data center approved on public lands. It is slated for construction in Eldorado Valley, an area of desert tortoise habitat southeast of Las Vegas.

Opponents argue the Bureau of Land Management (BLM) unlawfully sidestepped the National Environmental Policy Act by using a regulatory mechanism that treated the facility as a previously approved solar project. Critics highlight a massive disparity in resource needs, noting the data center requires 560 acre-feet of water compared to the 25 acre-feet needed for the original solar project. The city of Boulder City also filed an appeal, citing concerns over energy stability and a lack of federal consultation.

The BLM maintains the approval followed a 2025 executive order designed to accelerate data center permitting to advance technology. In response to the controversy, U.S. Representative Rashida Tlaib introduced the No AI Data Centers on Federal Lands Act, which seeks to ban such facilities on all federal property.