Reno City Council Extends Moratorium on AI Data Centers, Plans Permanent Rules
The Reno City Council extended a moratorium on AI data center approvals until August 31, 2027, to allow time for developing permanent regulations. The decision was met with diverse opinions from residents, environmental groups, and labor unions regarding the centers' impact on power, water, and the environment. Officials are now considering how to amend city code to address these concerns.
The Reno City Council voted 6-1 to extend a moratorium on conditional use permits for AI data centers until August 31, 2027. This decision aims to allow city officials time to amend the city code with permanent regulations for future technology development, addressing concerns about public health and environmental impact. Councilmember Kathleen Taylor, a mayoral candidate, was the sole dissenting vote, maintaining her opposition to the moratorium despite her commitment to supporting future regulations protecting resources.
The extended moratorium follows a 30-day pause approved last month, making Reno the first city in Nevada to implement such a measure. The eight-hour special meeting saw dozens of residents, environmental activists, union stewards, political candidates, and tribal members express diverse opinions. While a "louder majority" supported "guardrails" or an "outright ban" on data centers due to their massive power and water demands, some, including three workers' unions and the Nevada Data Center Alliance, argued against the moratorium, citing potential job losses and the risk of deterring investment.
Community members raised concerns about strain on the energy grid, potential excess water use, carbon emissions from backup diesel generators, and air pollution. Autumn Harry, a Pyramid Lake Paiute tribal member and founder of the Water Over Data Alliance, specifically called data centers "another form of water theft" and "land theft" impacting tribal communities. City staff indicated that a ban could be incorporated into future regulations, but councilmembers expressed caution about endorsing an outright prohibition. The Nevada Legislature is also expected to address data center regulations in its 2027 session.