Nevada county totally bans data centers in over-appropriated water basin

Nye County, Nevada, commissioners have unanimously voted to implement a complete ban on data centers within Hydrographic Basin 162, making it the first municipality in the state to prohibit these facilities outright. The decision came after extensive public commentary, with most residents supporting the ban due to concerns over water scarcity in the over-appropriated basin, which includes the Pahrump Valley.

This ban directly impacts Gigawatt Development Partners LLC's proposed 900-acre Manse Technology Campus in the Pahrump Valley, despite the company having reportedly secured necessary water rights. The Manse Technology Campus was projected to use approximately 300 acre-feet of water annually at full buildout. Commissioner Bruce Jabbour emphasized the priority of resident welfare over data center development, while Commissioner Ron Boskovich, who initiated a temporary moratorium in June, highlighted concerns about water levels in Lake Mead and the high water demands of data centers.

The ban follows a temporary county-wide moratorium on new data center applications, which remains in effect until new local regulations are adopted. Commissioners also agreed to hold a special meeting to establish land use regulations for data centers in areas outside the newly banned basin. Although some commissioners, like Debra Strickland, noted the potential for significant tax revenue from data centers, the immediate priority was water conservation. Gigawatt Development Partners LLC had been seeking Nevada Data Center Tax Abatements for their project, which was estimated to generate substantial tax revenue, even after tax breaks.