Gubernatorial candidates on data centers
Nevada's gubernatorial candidates hold opposing views on data center development. Governor Joe Lombardo supports data centers for economic growth, while challenger Attorney General Aaron Ford proposes pausing tax breaks and addressing public concerns about water and electricity usage, as well as rising electricity rates.
The upcoming gubernatorial election in Nevada features a stark contrast in candidates' positions on data centers. Current Governor Joe Lombardo expresses strong support for data centers, citing economic benefits and asserting they do not drastically deplete environmental resources. His administration oversaw the awarding of approximately $233 million in tax breaks to data center projects between 2023 and 2024.
Challenger Attorney General Aaron Ford, however, plans to implement a data center strategy aimed at increased accountability for business owners. Ford's proposal includes pausing all new tax abatements for data centers, addressing concerns from voters regarding water and power consumption, and potential increases in electricity rates. He highlights that Nevada data center projects received $340 million in state tax abatements from 2021 to 2024. While Ford sponsored the 2015 bill that initially established these tax breaks, he asserts his current stance is a response to evolving concerns over the past 11 years. He intends to work with the legislature to amend the 2015 bill and ensure data centers do not inflate consumer power bills or overdraw on water resources. The Truckee Meadows Water Authority stated that six Reno data centers, once fully operational, would use 20-22 acre-feet of water annually, a fraction of its total system usage. The Governor's Office of Economic Development (GOED) publishes audits on data centers, ensuring they meet requirements for jobs, wages, capital investment, health insurance, and Nevada resident construction.