Townsite Solar 2 LLC (TS2), the developer behind the proposed Boulder City data center in Clark County, Nevada, has retracted an application to build a 170 MW data center on land optioned for solar power generation and battery energy storage. Instead, TS2 will build a data center on a nearby parcel owned by the federal government.
According to a press release issued by Boulder City, TS2 holds an option to lease an 88.5-acre parcel of land owned by the city for the purpose of building solar power generation and battery storage until December 31, 2026. Toward the end of 2025, TS2 approached Boulder City requesting permission to build a data center on this land instead of the power and storage facility.
The city highlighted that this would require a new lease agreement in line with the Land Management Process (LMP), which dictates how city-owned land is used. This would effectively mean TS2 starting from the beginning, including consideration of comments from community members. The community isn’t welcoming toward data centers with the Planning Commission voting 6-1 in May that the City Council not approve adding data centers to the LMP List, citing in part the need for more regulatory oversight regarding this use.
While this was happening, TS2 approached the Bureau of Land Management (BLM) to amend its grant on an 80-acre site adjacent to the 88.5-acre parcel to build a data center. That amendment was approved by BLM on June 26, 2026.
As such, TS2 no longer needs permission to build a data center on Boulder City land as it now has permission to build a data center on federal land. However, despiteTS2’s withdrawal, the City Council will still receive the Planning Commission’s recommendation and discuss the proposal on July 14, 2026. The council may also decide to appeal the BLM’s decision within the 30-day window available.
“Since February, the City has followed the City’s LMP to facilitate an open and transparent discussion with residents about the possibility of leasing City land for a data center,” said Ned Thomas, City Manager. “The Council discussion on July 14 will conclude the current process.”
What isn’t clear is whether TS2 intends to hold on to its option on the parcel. While it may not be able to build a data center, it could still build a solar power generation facility and accompanying battery energy storage system (BESS) as it originally intended to do. The company does have until the end of December to exercise that option.
This is a major blow to the city’s finances which would have welcomed as much as US$ 1.47 million from the annual lease. Factoring in taxes, permit fees, and administrative charges, Boulder City would have added US$ 2.3 million to its revenue each year. These funds could have been used to support an array of public services.