Proposed 170MW AI Data Center Campus in Nevada to be Paired with Renewable Energy Project
March 30, 2026
A significant hybrid infrastructure project is being proposed for Boulder City, Nevada, highlighting the growing trend of integrating large-scale data centers directly with renewable energy generation and storage to power the demands of artificial intelligence and high-performance computing.
According to city planning documents first reported by 8NewsNow, a development entity named Townsite Solar 2 LLC is proposing to build a high-density AI data center campus with a power capacity ranging from 150 to 170 megawatts. The campus is planned for an 88.5-acre parcel of city-owned land, situated approximately 26 miles southeast of Las Vegas. Site plans indicate the potential for up to six buildings, with construction potentially starting later this year and the first phase coming online as early as 2027.
The project is notable for its planned colocation with a substantial behind-the-meter energy system. Townsite Solar 2, owned by Skylar Capital Management, is already approved for a 55-megawatt solar farm and a 150-megawatt battery energy storage system (BESS) on a separate 76-acre site. The latest filing for the data center campus suggests an even larger 167-megawatt BESS and a potential solar farm will provide load firming, peak shaving, and emergency backup, ensuring a more stable and sustainable power supply. The developers have stated the site will not connect to the local Boulder City electrical grid but will instead procure power through the regional Mead substation.
In response to environmental concerns, the proposal includes commitments to use treated effluent or air cooling to conserve local water resources and to power backup generators with biodiesel. However, the project faces local opposition, with a Change.org petition garnering over 1,000 signatures. The petition argues, "Decisions of this magnitude must not move forward without the clear support and consent of the people who live here."
The development brings together several key players. Skylar Capital, a hedge fund focused on energy markets, previously developed the first-phase Townsite solar-plus-storage project, now owned by Arevon Energy. Arevon is also a partner on this second-phase energy project. For the data center development itself, the companies are partnering with Texas-based Overwatch Capital, an investment platform founded in 2022 that focuses on sustainable digital infrastructure. This partnership underscores a strategic move by energy and investment firms to capitalize on the convergence of digital infrastructure and clean energy.
Source: datacenterdynamics
