Gov. Lombardo enacts executive order regulating data centers in Nevada
Nevada Governor Joe Lombardo signed an executive order imposing new regulations on data centers in the state. The order requires new facilities to pay state sales taxes for K-12 education, supply their own power, limit water use, and commit to community support. The move comes amid public concern and criticism from his Democratic rival, Aaron Ford, who views the order as insufficient.
Governor Joe Lombardo of Nevada signed an executive order to regulate new data centers in the state, requiring them to pay state sales taxes for K-12 education, supply their own power to avoid straining the grid, limit water use, and sign community support agreements. This action is a response to public outcry over the tax breaks previously given to data centers and their perceived impact on resources.
Lombardo's Democratic opponent, Aaron Ford, criticized the executive order as weak and a "transparent, reactive attempt" by Lombardo to distance himself from his past support of data centers. Ford, who authored the 2015 law providing data center tax breaks, now advocates for suspending all tax breaks to ensure the state benefits from these developments.
Trey Abney, executive director of the Nevada Data Center Alliance, expressed surprise at the speed and vitriol of the public opposition. He noted that the issue of data center regulation will be a top priority when the legislature convenes, with lawmakers expected to shape how Nevada deals with data center development going forward.