DRI brief details Nevada data center water, electricity use

The Desert Research Institute (DRI), a Nevada environmental nonprofit, recently released a summary of its January study on the economic opportunities and resource challenges associated with data center growth in Nevada. The study, titled "Data Center Water and Electricity Consumption in Nevada" by scientists Sean McKenna and Erik Henzl, indicates that Nevada has become one of the fastest-growing data center regions due to factors like abundant land, cost-competitive energy, and a favorable regulatory environment. There are currently over 60 data centers statewide, with 28 in the Reno-Tahoe region alone. The primary findings reveal that data centers consumed 22% of Nevada's electricity generation capacity in 2024, projected to rise to over 35% by 2030. This poses a significant challenge as Nevada already consumes roughly ten times more energy than it produces, raising concerns about power grid strain and potential disruptions for residents during heatwaves. Additionally, the study suggests local ratepayers in "data center clusters" like Northern Nevada might bear the costs of expanding the power grid. Water consumption is another critical concern, given Nevada's status as the driest U.S. state. The study estimates that just 12 data center facilities could use about 11.9 billion liters of water annually by 2033, equivalent to the drinking water for over 24 million adults. In response to these findings and concerns, local leaders forming the Truckee Meadows Data Center Policy Consortium are reviewing data center regulations. The Reno City Council and Sparks City Council are actively discussing the possibility of implementing a temporary pause on data center construction to develop appropriate regulatory frameworks.