Nevada is in the middle of a data center bonanza.
Tech giants and AI companies are lining up to build massive facilities across the state. These are huge, warehouse-like buildings that store and process digital information powering everything from iPhones to artificial intelligence.
Nevada currently has 74 active and planned data centers distributed across two primary hubs: the greater Reno-Sparks region in the north and the Las Vegas metro area in the south.
Nevada has become one of the fastest-growing data center markets globally, driven by proximity to California, a low risk of natural disasters, zero state corporate income tax, and an artificial intelligence infrastructure boom.
Data centers present both opportunities and challenges. They have been known to use massive amounts of water, strain energy grids and raise electricity costs for surrounding communities.
Governor Lombardo assures Nevadans that isn’t happening here.
Companies that invest in Nevada must do so in a way that protects our resources, our communities and our quality of life, Lombardo says.
Through the abatement process at the Governor’s Office of Economic Development, companies must meet strict qualifications and demonstrate their projects will deliver meaningful economic benefits without placing added burdens on the community.
“Projects will only move forward if they have responsible plans in place for water usage, energy generation and infrastructure demands,” Lombardo asserts.
“If a company wants to build here, it needs to bring its own solutions with it.”
Data centers are a sensitive subject in Nevada. Water usage is the main concern in a desert state. Lombardo has been clear on what Nevada requires.
“To go forward, they have to have a closed-loop system, the water must be recycled and reused at minimum evaporation so that we are not using excessive amounts of water to the detriment of residents,” Lombardo says.
Energy systems can be built so data centers are producing their own power instead of drawing from the grid that powers Nevada homes and small businesses.
Data centers create thousands of construction jobs during development.
Good paying jobs– electricians, plumbers, pipe fitters, glaziers, carpenters, heavy equipment operators –bring these projects to life.
Once operational, data centers also require highly trained technicians, engineers, cybersecurity professionals, operations specialists and maintenance personnel to keep these facilities running.
And there is tax revenue. These large-scale projects generate substantial tax revenue that help fund schools, roads, public safety and local government services.
On May 19, a $4.6 billion data center along USA Parkway in Storey County broke ground, with Lombardo attending. It will be roughly 38 football fields in size when completed.
The project should bring 1,500 construction jobs and maintain 100 long-term tech staff on site.
But communities across Nevada are raising data center questions.
Reno became the first city in Nevada to hit pause, extending a moratorium on new data centers through August 2027—or until the city adopts new regulations, whichever comes first.
In May, commissioners in Humboldt County also placed a pause on data center approvals as they research ways to regulate them.
Down south, Boulder City’s Planning Commission voted to reject a proposed AI data center after over three hours of public opposition. Boulder City voters will vote in November on whether to prohibit data center construction in the city altogether.
In June, the Clark County Commission approved an expansion of Switch’s massive Las Vegas campus— but commissioners made clear they want new rules for future projects.
Henderson is also weighing a 180-day moratorium on new data center applications, with the city council to consider it on July 21.
Lombardo has made economic diversification a priority, and Nevada leads the nation in job growth for 11 consecutive months.
Data centers are an emerging political issue in November.
The Nevada Legislature meets again in 2027. That session could produce statewide data center regulations—for better or worse.
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views.
