Federal Land, Local Consequences: BLM’s Boulder City Data Center Decision

| August 4, 2026

Federal land advocates often describe Bureau of Land Management (BLM) holdings as “the people’s land”. That framing is flawed. Unappropriated BLM land isn’t held in a trust for the people who live nearby. It’s managed at the discretion of a federal agency, answerable to no one locally, and Boulder City residents learned it the hard way.

Boulder City, home of the Hoover Dam, is historic in more ways than one. It has a Land Management Process, which gives residents repeated opportunities to give public comment to the Planning Commission and the City Council. Unlike its neighboring cities, Boulder City has intentionally limited growth and remains quietly tucked away from Las Vegas. 

Boulder City’s control over what happens within its own borders ended this month, when the developer behind a proposed data center shifted the project to federal land adjacent to the site originally proposed.

How TS2 Shifted Its Data Center Project to BLM Land

In January 2026, Townsite Solar 2 LLC (TS2) applied to lease 88 acres of city land for a data center.  In May, after hours of testimony opposing the plan, the Planning Commission voted 6-1, recommending that the City Council reject it.  Before the council could vote, TS2 withdrew their application and turned to an adjacent 80-acre federal parcel.


Why the BLM Approved the Data Center Without Local Input

 TS2 already held a BLM right-of-way, granted in 2023, for a solar and battery storage site. On June 26, the BLM approved an amendment to repurpose the right-of-way to a data center. The BLM skipped new environmental reviews and is treating the data center as essentially the same project as the solar farm. The city said it was never consulted about the change and didn’t even know about it until the amendment was approved.

Boulder City’s process – public, competitive, and accountable to elected officials – gave the residents a clear say in what happened to the land in city limits. It helped determine what developments could come in. The data center project would have generated $2.3 million in new city revenues. On the contrary, BLM’s process required no competitive bidding, no public hearing, and no local consultation. Now, the money generated by TS2 will end up in the coffers of the federal government. 

Put simply, Washington just took business away from Southern Nevada. 

Boulder City’s Appeal and What Comes Next

Boulder City’s Attorney, Brittany Walker noted, “This is a departure from previous precedent and procedure, as the BLM, essentially, sweepingly approved a new land use without following processes in federal law.” On July 14, the city voted to appeal the decision.  The appeal will slow the process down but not necessarily kill it. The BLM can go back and do another environmental review, run a public comment period, and continue with the project despite local opposition.

Boulder City’s experience is one instance of Nevada’s unique dynamic with its federal landlords. Nevada’s counties, cities, and residents are hindered daily by the 86% of the land in their state monopolized by BLM.

What Federal Land Control Means for Nevada’s Economic Future

That’s the deeper problem with federal land dominance. It isn’t just that Washington owns most of the land. Federal control over the land competes with and can override Nevadans’ own choices and economic opportunities. Boulder City ran a transparent process to attract investment on its own property – that process was outcompeted by a domineering federal landlord. Nevada’s local governments aren’t just landlocked by federal acres; they’re put at a direct disadvantage because Washington’s control snatches economic decisions from cities and counties. 

The fix isn’t a better run BLM. It’s a small federal footprint, through continued pressure for land disposal and transfer to the state. That way decisions about Nevada’s economic future can reside with the people Nevadans elect. Until then, cases like Boulder City’s will continue – a predictable outcome where the largest landowner in the state is the only one who matters. 

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McKenli Williams is a Research Assistant at Nevada Policy, where she focuses primarily on land and water policy. In her role, she conducts research and policy analysis to help inform legislators and the public on key issues affecting Nevada’s natural resources, public lands, and rural communities. Raised on a cattle ranch outside of Wells, McKenli developed a firsthand understanding of the challenges facing Nevada ranchers, farmers, and agricultural communities. She earned a bachelor’s degree in Agricultural Communications with a minor in Journalism from Utah State University. During her time at Utah State, McKenli gained experience in politics and public policy through her work on Adam Laxalt’s U.S. Senate campaign and as a congressional intern for Burgess Owens on Capitol Hill. She also contributed reporting and commentary on higher education issues as a writer for The College Fix.
Outside of work, McKenli enjoys reading, watching movies, spending time with family, and exploring the outdoors.

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