Nevada, Clark County education associations respond to governor’s data center order
Nevada Governor Joe Lombardo signed an executive order establishing a policy framework for data center development, including conditions for protecting water, electricity, and school funding. The order modifies tax abatement conditions for new data center applicants. While the Clark County Education Association supports the order, the Nevada State Education Association criticizes it as insufficient and a continuation of tax giveaways.
Nevada Governor Joe Lombardo has issued an executive order to establish a policy framework for data center development within the state. The order aims to safeguard water and electrical supplies while ensuring adequate school funding, by introducing new conditions for data center companies seeking partial tax abatements.
Under the new policy, data center applicants must agree to fully pay the Local School Support Tax and execute a binding Community Support Commitment before their tax abatement requests can be considered by the Governor’s Office of Economic Development (GOED) Board. This executive order builds on 2015 legislation that initially granted tax abatements to data centers meeting certain employment, wage, and investment thresholds, which previously lacked protections for energy or water use, or flexibility to deny abatements. Governor Lombardo stated that the order ensures schools receive necessary resources that would otherwise be lost under outdated state law.
The Clark County Education Association (CCEA), represented by President Kristan Nigro, expressed support for the Governor’s decision, noting it addresses key points from their previously released 8-point plan concerning data centers, including issues of water, power, community control, and ending certain tax abatements. They acknowledged that further legislation would be required in the 2027 Legislative Session.
Conversely, the Nevada State Education Association (NSEA) opposed the order, labeling it a continuation of “failed data center tax giveaways” and accusing the Governor of using public education for political cover. The NSEA argued the order leaves existing abatements untouched, preserves the broader data center abatement program, and promotes further development, while failing to adequately address the industry’s impact on water, the power grid, utility bills, and communities. They contend that the order’s provision to stop abating the Local School Support Tax for new applicants is a “half measure” as data centers can still qualify for other significant tax breaks.