Nevada's governor says big tech must pay its fair share. Conservatives are asking who should set the rules.
The Short Version
Gov. Joe Lombardo signed Executive Order 2026-005, which he calls the “Nevada Standard for Responsible Data Center Development.”
The order says developers must pay the Local School Support Tax in full, cover project costs so ratepayers do not get stuck with them, and protect water, the power grid and local communities.
Think of it like a house rule. You can host the party. You just have to buy your own pizza.
What Changes on Taxes
Before this order, the state could cut a data center's sales tax to 2 percent from the base rate of 6.85 percent. Now, new projects seeking the break will pay an effective rate of 4.6 percent. Everyone else in Nevada pays between 7.1 and 8.375 percent, depending on the county.
So the discount is smaller, but it is not gone. The changes also do not apply to applications already approved. Those older breaks have cost the state nearly $340 million over fiscal years 2021 through 2024.
Builders must also sign a “Community Support Commitment” first. It covers water, ratepayers, grid reliability, siting, neighbors, workforce, community benefit, transparency and speed to power.
Why Conservatives Should Care
There are three big reasons.
First, tax breaks are government picking winners. A small plumbing shop pays full tax. A giant tech company gets a discount. Many conservatives find that unfair.
Second, your light bill. One expert warned that if utilities build extra power capacity for data centers that later scale back, homes and other businesses could be stuck with the bill. Families should not pay for a corporation's risk.
Third, how the rules were made. In 2023, Lombardo froze the issuance of new regulations and ordered a review of existing ones. Now he is adding new requirements by executive order. Some conservatives will ask if lawmakers should make these rules instead.
His office points out that the 2015 law gave the state no flexibility to deny abatements, and lawmakers widened that power in 2025. The order also does not limit the land-use authority of cities or counties. That keeps local control in place.
What Voters Think
Data centers are not popular. A May Gallup poll found seven out of ten Americans oppose building data centers in their local area. A September University of Massachusetts Amherst poll found only one in nine Americans support one in their community.
Nevada's own numbers raise eyebrows too. The Nevada Independent reports more than $450 million in state tax breaks came with a promise of about 400 permanent jobs.
What Comes Next
The fight is far from over. The Las Vegas Review-Journal calls it a sure bet that the Legislature will revisit the issue, with several bill drafts underway. The Legislature meets again in 2027.
Local voters may weigh in sooner. Boulder City voters will decide in November whether to prohibit data center construction in the city. The governor's race, just weeks away, may also shape what happens next.
What Conservatives Can Do
Start by paying attention. When the state writes the Community Support Commitment, read it. Ask if the water and power promises come with real numbers and real penalties.
Show up at county commission and city council meetings. Local land decisions belong to local people.
Talk to your state lawmakers before 2027. Ask them to treat every business the same, or at least to put an end date on any special break. Ask for public reports on how many jobs data centers actually create.
Finally, keep the pressure on one simple rule. If a company needs the power, the company pays for the power.
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. This article was written with the assistance of AI.
