Joe Lombardo and Aaron Ford split over economic and environmental impact of data centers
Data center development has become a contentious issue in Nevada's gubernatorial race, with Governor Joe Lombardo advocating for economic growth and Attorney General Aaron Ford pushing to halt tax abatements and require developers to cover resource costs. Concurrently, a state legislative committee is drafting a bill to end data center tax breaks and implement a statewide construction pause. Local jurisdictions like Nye County have already banned new data centers, while others like Henderson and Clark County are also implementing or weighing new regulations.
Data center development has emerged as a deeply divisive issue in Nevada, prominently featuring in the 2026 gubernatorial campaign between incumbent Republican Gov. Joe Lombardo and Democratic Attorney General Aaron Ford.
Governor Lombardo champions data centers as a cornerstone of the state's economic growth strategy, assuring residents that such development will not lead to power outages or rate increases, and promising that industry revenue will benefit K-12 education. In contrast, Attorney General Ford advocates for a halt to tax abatements for data center construction and proposes requiring developers to provide their own water and pay for their own electricity. Ford's campaign has also scrutinized the Better Nevada PAC, a Lombardo-aligned group, for accepting a significant donation from the wife of Switch founder Rob Roy, suggesting political influence.
The debate extends into the Nevada Legislature, where the Joint Interim Standing Committee on Revenue has agreed to draft a bill aiming to end state tax breaks for data centers and impose a statewide moratorium on new construction. Senator Dina Neal, D-North Las Vegas, chairs the committee and cites concerns over the state's natural resources, particularly water usage from the Colorado River and the fact that existing data centers already account for approximately 22% of Nevada's electricity consumption. A study from the Desert Research Institute highlights the substantial water demands of these facilities.
Local governments are also actively addressing data center impacts. Nye County has enacted a ban on construction and operation within the Pahrump Valley, while Henderson withdrew a proposed moratorium in favor of implementing stricter permitting rules. A federal board has issued a stay, blocking a proposed project on Bureau of Land Management land near Boulder City, and Clark County is in the process of developing its own local regulations for data centers.