Lombardo signs executive order setting standards for data center development

Nevada Governor Joe Lombardo announced he has signed an executive order establishing a new framework for data center development across the state. This order mandates that data center builders must pay local school taxes and cover infrastructure costs before they can receive tax abatements, a move signaling a shift in how the state manages incentives for the rapidly expanding industry.

The announcement comes shortly after FOX5 reported that data company Switch is expanding its footprint in Southern Nevada, acquiring land at the Apex Industrial Park for $196 million. The issue of data center development has become a point of political debate, with State Attorney General Aaron Ford, a candidate for governor, having previously announced his own plans to regulate the industry. Ford's proposals include requiring data centers to provide their own water or coolant and pay for their own power, as well as a ban on evaporative cooling. He also seeks to pause tax abatements altogether, aiming for requirements to be met for construction in the first place, rather than just for tax breaks.