Boulder City Residents Rally Against First Data Center Amid Revenue Debate

Details Emerge on the Ambitious Project (Image Credits: Unsplash)

Boulder City – A proposed massive AI data center on city-owned desert land has divided this historic Nevada community near Hoover Dam. Residents worry about environmental strain and rising utility costs, while developers and officials highlight potential economic gains. The project advanced through initial city reviews despite growing pushback, setting the stage for further public scrutiny.

Details Emerge on the Ambitious Project

The Townsite Solar 2 initiative targets 88.5 acres of open desert west of U.S. Highway 95 and south of Interstate 11, about 2.8 miles from the nearest homes.[1][2] Backed by Skylar Capital Management, the facility would span up to 300 megawatts, dwarfing typical data centers and generating heat comparable to 200,000 space heaters operating nonstop.[3]

Originally planned to use up to 650,000 gallons of treated wastewater daily for cooling, developers pivoted to an air-cooled, closed-loop system following community feedback and a regional ban on evaporative cooling.[4][2] Power would come from utilities in California and Arizona, bypassing the local grid. During construction, the site might require up to 900,000 gallons of effluent daily for dust control, though potable water use would remain minimal.

Community Pushback Gains Momentum

Nearly 2,200 residents signed a Change.org petition launched by Brynn deLorimier, urging city leaders to reject data centers lacking direct voter approval.[3][2] Opponents gathered at the site and recent open houses, voicing fears over intensified desert heat, pollution-linked health risks, and pressure on scarce resources near receding Lake Mead.

At a community meeting, attendees called the presentation a sales pitch. Resident George Rhee expressed skepticism: “They say it won’t use any water. It won’t affect our energy costs. There’s no significant heat footprint. All these things are false, in my opinion.”[4] Brynn deLorimier added, “We’re here in the desert in the second fastest warming region in the United States. And this data center, it’s massive.”[1] Plans call for a protest outside City Hall on April 15 ahead of a Planning Commission review.[1]

• Excessive heat output in a warming climate.
• Potential spikes in water and power bills despite assurances.
• Threats to nearby habitats and air quality.
• Mismatch with Boulder City’s historic, low-growth character.
• Limited public input on city-owned land.

Developers and Officials Counter with Economic Upside

Project manager Rick Lammers emphasized adaptability at the first public forum. “We’re going to listen, and we’re going to adapt and try to make this project the best data center in the entire country,” he stated.[4] The lease would deliver $2.6 million in the first year and $1.5 million annually thereafter – double the revenue from prior solar uses – while creating 200 to 300 construction jobs and 25 to 40 permanent positions averaging over $100,000.[4]

City Manager Ned Thomas noted the municipality’s leverage: “The city owns the land, and that gives us a tremendous amount of influence and control over what project is built.”[2] Council member Denise Ashurst supported exploration: “I know we are small town… but I think there is always room for technology.”[1] Officials positioned the effort as a way to address budget shortfalls without burdening residents’ rates.

Ballot Measure Looms as Decisive Test

Voters face Question 1 in November 2026: “Should data center facilities be an approved land use within the Eldorado Valley Transfer Area outside of the Multi-species Habitat Conservation Easement?”[5]) Approval would enable leases there but might not directly govern this site, given its status on city-owned property outside the core zone.

The council referred the measure 3-1 in February, reflecting internal divisions. Proponents argue it sustains low taxes through higher land values, while opponents see risks to the town’s clean, green ethos. More feedback sessions are planned before any groundbreaking, potentially as early as late 2026.[6]

As Boulder City navigates this crossroads between preservation and progress, the community’s voice grows louder. Will economic incentives outweigh environmental risks? Share your thoughts in the comments.