Trump administration accelerates data center approvals on federal public lands as part of AI infrastructure acceleration push.
Since returning to power, the Trump administration has stripped away land conservation rules, rolled back environmental protections in favor of extractive industries, and reduced the size of public lands and monuments. Now it is leveraging public lands to advance another key priority: the buildout of AI infrastructure and massive data centers.
In June, the Bureau of Land Management quietly approved the Townsite Data Center project in Nevada, situated on 88.5 acres of public land in Boulder City, roughly 25 miles southeast of Las Vegas. It marks the first data center approval on public lands to date. Notably, the approval proceeded without any updated environmental review or public input for a project initially pitched and permitted as a solar and battery storage facility.
"BLM basically converted the solar approval into a data center approval with no new environmental assessment of the impacts, no public comment or review," Patrick Donnelly, Great Basin director at the Center for Biological Diversity, told Sierra. "They just issued the approval on June 26 and didn't even tell anyone about it."
The BLM did not announce the decision until July 20, more than three weeks after approving it. The agency stated that the project "reflects the growing role of public lands in supporting the infrastructure needed to power innovation, advanced technology, and the nation's future economic growth, while advancing the Bureau's commitment to responsible stewardship." It cited an executive order signed by President Donald Trump that instructs federal agencies to accelerate permitting for data center infrastructure on federally managed and public lands.
The executive order directs the Department of the Interior and the Department of Energy to "offer appropriate authorizations" to large data center projects—those exceeding 100 megawatts—at applicable federal sites, and explicitly allows such projects to bypass environmental reviews. In April 2025, the DOE identified 16 federal sites, many at national laboratories, for potential AI infrastructure development. By July 2025, it had selected four sites for AI data center projects. Last week, the DOE unveiled plans for a $100 billion, 1.8-gigawatt AI data center campus at its Paducah site in western Kentucky. "The US government is leveraging its assets—like our federal lands—to add power generation, create jobs, and ensure the United States wins the AI race," Secretary of Energy Chris Wright said.
The Townsite project was originally proposed as a 19-megawatt solar energy generator with up to 35 megawatts of battery storage. An environmental assessment was completed in 2023. Late last year, however, the developer proposed amending the right-of-way to convert the project into a 167-megawatt data center powered by gas plants. The BLM determined that an updated environmental assessment was unnecessary, arguing that the two projects were "substantially the same."
Olivia Tanager, director of Sierra Club's Toiyabe Chapter, characterized the conversion and approval as "a very clear bait and switch." She emphasized the loss of a clean energy project: "From a transparency and democracy standpoint, it's very concerning. The solar project would have generated clean electricity and contributed to the state's renewable energy development and goals."
Environmental advocates raised multiple concerns about the data center project, including air pollution, wildlife habitat destruction, and water usage in an exceptionally water-stressed region. "We're talking about one of the driest regions of the country, sitting right on the banks of the Colorado River that is seemingly dying because of lack of water availability," Tanager said. "Water that the energy generation is going to require, and even the water that a closed-loop system requires, really strains existing water availability in the region."
The BLM's approval now faces legal challenges. The Center for Biological Diversity and the Sierra Club Toiyabe Chapter filed an administrative appeal, contending that the approval violates the National Environmental Policy Act, the Federal Lands Management Policy Act, and the Endangered Species Act. Boulder City has also filed a separate appeal. CBD and the Sierra Club have requested a stay on construction pending resolution of their challenge.
"Trump is sidestepping the law and shutting the public out of decisions about our public lands. By cutting the public out of the process, they're trying to hand over Nevada's desert to billion-dollar tech companies without anyone getting a say," Tanager said.
Donnelly emphasized that the core issue extends beyond process violations. The appeal aims ultimately to stop what would be the first data center built on U.S. public land. Environmental advocates warn that if the BLM's decision stands, it sets a dangerous precedent. "If this isn't challenged, it won't stop in Boulder City—it will become the blueprint for data centers across public lands in the West," Tanager said.
According to Donnelly, there is a "dire risk" of additional data centers on public lands. Other developers have already floated similar proposals to convert solar projects into data centers. In April, a developer wrote to the BLM proposing to replace its planned solar facility in western Nevada's Amargosa Valley with a data center and natural gas facility, stating the change would "better align with the goals of our Administration."
Representative Rashida Tlaib responded with a sharp statement: "Our corrupt, AI-addicted president cannot be allowed to sacrifice our federal lands so that Big Tech oligarchs can get richer. I will continue to push back against harmful AI data centers alongside our residents to protect our public lands, health, and environment."
As public backlash against data centers mounts, Donnelly stressed the urgency of resisting the transfer of federal and public lands to AI developers. "We are seeing attacks on our public lands from all sides," he said.