Developer withdraws Boulder City data center, signals move to federal land

The developer who proposed a data center on city-owned land about three miles southwest of Boulder City has withdrawn their application from the city’s land leasing process after a path to development on federal land opened up.

Townsite Solar 2 LLC  — the project developer — withdrew its application for the proposed 88.5-acre data center on city-owned land after the Bureau of Land Management approved its request to amend a right-of-way grant for a data center on an adjacent federally-owned parcel just to the west of the city-owned site.

In 2023, the BLM completed an environmental assessment for 80 acres of BLM managed land adjacent to the city-owned site to evaluate its potential use for a solar energy project, as required under the National Environmental Policy Act.

On June 26, the BLM approved an amended right-of-way grant for a proposed data center on the 80 acre site, according to a city news release Tuesday. The decision includes a 30-day appeal period.

The city council will still receive the Planning Commission’s recommendation and discuss the proposal at its July 14 meeting, where it will decide whether or not to appeal. 

A city council agenda item posted Tuesday includes a resolution to authorize the city attorney to file a notice of appeal and petition to stay BLM’s decision to approve the right-of-way grant.

One possible issue with the BLM right-of-way approval that could warrant appeal is that the NEPA process completed in 2023 was for solar power generation and battery storage, not a data center. 

Townsite Solar 2 LLC submitted a land management application to Boulder City in late 2025 to develop a data center on the city-owned parcel instead of solar plus battery storage, which would require a new lease agreement in order to ensure residents had an opportunity to comment on the proposal. 

“Since February, the city has followed the city’s (land management process) to facilitate an open and transparent discussion with residents about the possibility of leasing city land for a data center” City Manager Ned Thomas said in the release.

Around the same time, in late 2025, Townsite Solar 2 LLC also applied to the BLM to amend its right-of-way grant for a data center on federally-owned land, according to the release. 

The release notes that initial estimates for the annual lease value for a data center were approximately $1.47 million, while a competitive bid process would have likely yielded more revenue. That additional revenue would include property taxes, permit fees, and administrative charges for a total of roughly $2.3 million a year.

“These revenues would have contributed to the growing costs for vital community services such as police, fire and emergency response, utility infrastructure, water conservation, and more,” the release states.