Data centers in the desert: why here and why now?
This article, part of a "Data vs. Desert" series, introduces data center development in Southern Nevada, highlighting why the region is attractive to developers due to available land, energy, and tax abatements. It also discusses the evolution toward larger, more resource-intensive AI data centers and the increasing local concerns, particularly regarding water usage in the Mojave Desert.
KTNV, a Las Vegas news station, launched a week-long series titled "Data vs. Desert" focusing on data center development and regulation in Southern Nevada. The introductory piece explains what data centers are, why they are proliferating in the region, and why they are now garnering significant attention.
The article notes that data centers, while a current hot topic, have been present for years, citing Switch's large campus off the 215 and Google's Henderson data center built in 2019 as examples. Market intelligence firm Baxtel identifies approximately 75 data centers operating in Nevada, primarily in the Reno and Las Vegas areas, with more in development. Experts describe the industry as "opaque," making it challenging to gain insights into their operations.
Erik Henzl and Sean McKenna from the Desert Research Institute explained that Nevada attracts data center developers due to available and cost-competitive land and energy, along with significant tax abatements. These incentives, contingent on approval from the Governor's Office of Economic Development, include up to 75% off personal property taxes for 10 or 20 years, provided certain employment and investment criteria are met. Nevada's proximity to the Bay Area and high-bandwidth fiber optics also contribute to its appeal, particularly for the Reno-Tahoe area.
The recent surge in attention is attributed to the increasing number and scale of proposed projects, largely driven by artificial intelligence. AI-tailored data centers demand complex cloud computing capabilities, advanced storage, networking, energy, and cooling, making them much larger and more resource-intensive than traditional facilities. While 99% of Americans use AI features weekly, 7 out of 10 oppose AI data center construction in their area. The series will continue with a focus on water consumption, a major concern for locals in the Mojave Desert, examining policies and innovative cooling methods.