BOULDER CITY, Nev. — A proposed artificial intelligence data center near Boulder City is putting the use of federal land at the center of Nevada’s closely watched governor’s race, as residents and candidates debate the projects’ effects on water, electricity costs and the desert landscape. The Townsite project was initially proposed on land near the small community southeast of Las Vegas. After residents organized against it, developers withdrew their application and pursued nearby federal land instead. The Bureau of Land Management approved that proposal, making Townsite the first data center project approved on federal public land, according to the reported account. Construction is now stalled. A judge ruled that the government could not rely on an environmental review prepared when the site was intended for a solar farm. Boulder City resident Janelle Sorenson, who opposed the project, said residents had little say after the proposal shifted to federal property. The change has sharpened local concerns about whether communities can influence development decisions on land controlled by the federal government. The stakes extend beyond Townsite. More than a dozen data center projects are in planning stages on federal land, and about 80% of Nevada is federally owned. Data centers can require large amounts of electricity and water, prompting worries among residents about utility bills and pressure on scarce water supplies. The candidates have drawn different lines on public-land development. Republican Gov. Joe Lombardo has not ruled out data centers on federal land if they have community support. He recently signed an agreement with the Trump administration aimed at streamlining infrastructure permitting, which could include such projects. Democratic nominee Aaron Ford, Nevada’s attorney general, has pledged to oppose data centers on public lands, arguing that affordable housing should take priority. Both candidates say data centers must comply with state rules, including requirements to cover their energy costs and protect water supplies, to qualify for state tax abatements. Ford announced in August that he would pause new data center tax abatements while the state audits whether projects have delivered promised economic and tax benefits. Lombardo issued an executive order in September adding requirements for data centers and increasing their tax contributions to schools. He has described the projects as a major economic opportunity for Nevada. The candidates have also criticized each other’s records. Lombardo has pointed to Ford’s role in co-sponsoring a 2015 law that established the state’s data center tax-abatement program. Ford has criticized Lombardo over more than $200 million in tax breaks for data centers. Ford says he would use state authority, including litigation and withholding abatements, to prevent companies from evading Nevada’s rules. Lombardo’s office says he would confront the federal government to advocate for Nevadans. The issue has crossed party lines in Boulder City. Resident Autumn McGrath-Shook, who describes herself as conservative, said her opposition to data centers led her to leave the Republican Party and register with the Green Party. She remains undecided in the governor’s race, weighing her concerns about Lombardo’s stance on data centers against her reservations about Ford on crime. UNLV political science professor David Damore described data centers as a galvanizing issue that has caught some politicians off guard. Similar disputes have emerged elsewhere: Texas Gov. Greg Abbott paused data center approvals pending audits, while Pennsylvania Gov. Josh Shapiro removed proposals from a fast-track permitting process and required local approval before state review. The federal policy backdrop is also shifting. President Donald Trump has backed faster permitting for AI infrastructure, and his administration has rolled back federal environmental review requirements for energy and infrastructure projects. Industry representatives say responsible development on public land is possible, while environmental advocates warn that federal sites could allow projects to sidestep protections and public input. Olivia Tanager, director of the Sierra Club’s Toiyabe Chapter, said public lands should be protected for future generations, and called for Congress to set stronger standards for environmental review and public engagement. Without new legislation, she warned, more data centers could advance on federal property in coming years.