Teachers’ union says Nevada wants data centers to help fund schools
A Southern Nevada teachers' union, the Clark County Education Association, proposed an eight-point plan for data centers to contribute more to public schools and address environmental concerns. The plan advocates for data centers to pay the Local School Support Tax and for a review of property tax abatements. This proposal emerges amidst legislative discussions where lawmakers recently voted to draft a bill that would pause data center development statewide and repeal current tax incentives.
The Clark County Education Association (CCEA), a prominent Southern Nevada teachers' union, has unveiled an eight-point plan aiming to reform the relationship between data center companies and the state of Nevada, particularly regarding public school funding and environmental protection. John Vellardita, executive director of the CCEA, emphasized that while the union is not calling for a moratorium, it seeks a new model where the "trillion-dollar industry" pays its fair share. Key components of the plan include requiring data centers to pay the Local School Support Tax, a statewide 2.6 percent sales tax, which the union estimates could have generated an additional $357 million for schools since 2015. The plan also calls for a review of property tax abatements, with potential revenues earmarked for special education or universal pre-kindergarten.
The CCEA's proposal also addresses community concerns, advocating for local control over data center siting, strict water usage controls (requiring dry cooling or closed-loop systems), and mandating that data centers build stand-alone power generation or avoid adverse impacts on ratepayers and the environment. These efforts are being presented to tech companies, the governor's office, and state lawmakers, though the union is still seeking a bill sponsor.
This initiative comes shortly after an interim revenue committee of Nevada lawmakers voted to draft a bill proposing a statewide pause on data center development and a repeal of the state's existing tax abatement structure for these facilities. Vellardita criticized this legislative move, arguing that the same lawmakers who created the abatement program in 2015 are now campaigning on moratoriums, which he views as a disservice to the state. However, the CCEA's plan itself faced condemnation from other groups, including the Sierra Club, Nevada State Education Association, and Assemblymember Selena La Rue Hatch, who argue that school funding should not be tied to an industry facing significant environmental and infrastructure challenges. Tray Abney, from the pro-industry Nevada Data Center Alliance, indicated that while his members are open to discussions on tax reform, an outright repeal of abatements would be unfair, given other industries also benefit from them.