NV lawmakers weigh excessive resource needs of data centers they court

Nevada lawmakers are grappling with the significant increase in energy and water demands driven by the data center boom, a sector they have courted with tax abatements for a decade. During a joint meeting of the interim committees on natural resources and infrastructure, utility NV Energy projected a 50% increase in energy needs by 2030, largely due to artificial intelligence and data centers, acknowledging this surge could jeopardize the state's clean energy targets. Stacy Tellinghuisen of Water Resource Advocates raised concerns about speculative demand and the potential for residential and non-data center businesses to bear the costs if utilities overbuild capacity. Olivia Tanager, executive director of the Sierra Club Toiyabe Chapter, highlighted the risk of cost-shifting to the public, citing a Harvard Law School report on utility rate structures. The groups advocated for greater transparency in water usage, noting that while closed-loop cooling systems reduce water consumption, not all data centers use them. They also pushed for stricter standards on diesel backup generators due to air quality concerns. Industry representatives countered that modern data centers employ efficient closed-loop cooling, drastically reducing water use. While the meeting intentionally avoided discussing tax abatements, the overall sentiment leaned towards ensuring that the economic benefits of data centers do not come at the expense of the environment or public finances. Google and Fervo were mentioned as partners with NV Energy on an enhanced geothermal project, demonstrating potential for clean energy investment by data center companies.