Indy Explains: With dozens of data centers in Nevada and more on the way, how much water and power do they really use?
This article explores the environmental impact, water, and electricity consumption of Nevada's growing data center industry, which faces increasing public opposition. It highlights that over 70 data centers are operating or planned in the state, significantly contributing to statewide power demand. The report also details specific regulatory actions, such as the Southern Nevada Water Authority's ban on evaporative cooling, and discusses job creation, housing prices, and tax abatements.
Rebecca Gill, an associate professor at UNLV, observes that data centers have become a focal point for diverse anxieties across Nevada, leading to neighborhood protests and countywide moratoriums against their construction. With over 70 data centers either operational or planned in the state, public opposition is prevalent, despite the widespread reliance on these facilities for daily online activities.
The report details that data centers, crucial for internet infrastructure, consumed 4.4 percent of total national electricity in 2023, with projections indicating a significant increase by 2028. Nevada was identified as one of the 15 states accounting for 80 percent of this demand. NV Energy, Nevada's primary electric utility, anticipates needing double its current peak demand to accommodate new data center growth and has proposed mandatory large load electric service agreements, which would require companies consuming 25 megawatts or more to cover associated infrastructure and energy costs. State energy regulators are currently reviewing this proposal.
Water usage is another critical concern, as data centers require substantial amounts for cooling. While modern facilities can reduce consumption with closed-loop systems, many in Southern Nevada previously relied on water-intensive evaporative cooling until the Southern Nevada Water Authority banned this practice in 2023. Specific examples include Google's Storey County facility, which used 1.5 million gallons in 2024, and planned data centers in Reno, each projected to use 650,000 gallons annually. Despite these figures, data centers account for a smaller percentage of Southern Nevada's total water usage compared to golf courses or casinos.
The article also addresses air pollution from fossil fuel-powered data centers and their backup diesel generators, with researchers predicting significant public health burdens by 2030. Economically, while data centers do create jobs, their impact on overall employment and wages is often less than industry advocates suggest, though home prices in affected counties tend to rise. The report notes that tax incentives are a secondary consideration for hyperscale data centers but are crucial for colocated facilities.