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Residents, officials vow legal fight as feds approve public-land data center the city rejected

"We were not contacted by the BLM to be included in that decision."

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Amid local opposition, Boulder City, Nevada, is contesting a federal decision that approved a data center on public land within the city's jurisdiction.

For many residents, the dispute is about more than a single development. It is about whether communities get a meaningful say when energy-intensive projects arrive in their backyard.

What's happening?

According to Nevada Public Radio, Boulder City has filed an appeal after the U.S. Bureau of Land Management approved a data center on an 80-acre federally owned parcel inside the city's jurisdiction amid a push to achieve "global dominance" in artificial intelligence. 

Public frustration came to a head at a packed City Council meeting in June, after which the council voted unanimously to challenge the approval. 

"The BLM approved something in our jurisdiction. We were not contacted by the BLM to be included in that decision," Boulder City Mayor Joe Hardy said, per Nevada Public Radio. 

The city filed its appeal on July 23 with the Department of the Interior's review board. In the filing, Boulder City argued that the proposed use is not allowed under local zoning, noting that the parcel carries an "Energy Resource" designation that does not permit data centers.

The developer, Townsite Solar 2, LLC, first sought approval for battery-and-solar storage and later changed the application to add a data center, according to the report.

Why does it matter?

As the AI race heats up, federal officials have sought to accelerate permitting for data centers, which require massive amounts of electricity and, in many cases, water for cooling.   

In its appeal, the city warned that the proposed power demand is "three times the size of Boulder City's load" and would connect to the same substation that serves residents, according to Nevada Public Radio

Officials have raised concerns that residents could end up supporting the project through higher utility costs despite not having a meaningful chance to weigh in. They also questioned whether emergency services and other city infrastructure would be overstretched. 

Lisa LaPlante, a spokesperson for Boulder City, said residents and officials feel "blindsided."

What's being done?

Through its legal appeal, Boulder City argues that the BLM moved forward without adequately consulting local government or providing sufficient public input, and it says the agency violated both the National Environmental Policy Act and the Federal Land Policy and Management Act.

Townsite Solar 2, meanwhile, said it "respects and has followed the processes in place," according to Nevada Public Radio. The company also said it wants to create "meaningful, measurable benefits" for residents, including "water-positive outcomes," renewable energy use, and an energy fund to lower energy costs.

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