Townsite Solar 2 Withdraws Application for Data Center

In a press release from Ned Thomas, City Manager, it was announced that Townsite Solar 2 has withdrawn its Land Management Plan application for a data center on Boulder City property. Instead, the company announced that it had reached an agreement with the Burean of Land Management on an adjacent, federally-owned parcel, for its project.

From the City's press release on the matter:

In late 2025, TS2 submitted a land management process application to the City of Boulder City to develop a data center on the optioned parcel instead of solar plus battery storage. This would have required a new lease agreement, and the City required the developer to start at “square one”, the Land Management Process (LMP), to ensure that the community had an opportunity to comment on the proposed new data center use. Boulder City’s unique LMP is the first step toward determining the viability of the lease of City-owned property.

Around the same time, in late 2025, Townsite Solar also applied to the BLM to amend its ROW Grant for a data center. On June 26, 2026, the BLM granted the amended ROW Grant, and there is a 30-day appeal period. In May, the Planning Commission voted 6-1 to recommend 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. Despite TS2’s withdrawal of its LMP application, the City Council will still receive the Planning Commission’s recommendation and discuss the proposal at its meeting on Tuesday, July 14.

“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 City Manager Ned Thomas. “The Council discussion on July 14 will conclude the current process.”

Initial estimates for the annual lease value for a data center were approximately $1.47 million (and a competitive bid process would have likely yielded even more) - plus property taxes, permit fees, and administrative charges – all totalling roughly $2.3 million in new revenue per year – for the benefit of Boulder City residents. These revenues would have helped cover to the growing costs of providing vital community services such as police, fire, emergency response, utilities, and more.

Stay tuned for additional information as it becomes available.