Nevada's Governor Lombardo signs new data center regulations
Nevada Governor Joe Lombardo signed an executive order updating a 2015 law that regulates data center development in the state. The new rules aim to protect Nevada's water supply and electrical grid, requiring data centers to prove they won't strain power during emergencies and ensuring utility bills won't rise for regular customers. The order also prevents foreign adversary-owned data centers from receiving tax breaks.
Nevada Governor Joe Lombardo has signed Executive Order 2026-005, significantly updating a 2015 law concerning data center development in the state. The previous law granted tech companies tax breaks without sufficient protections for Nevada's water supply and electrical grid.
The new regulations mandate that any new data center must demonstrate it will not strain the power grid during emergencies. Furthermore, companies must ensure that regular utility customers will not see their bills increase to cover data center expenses. The order also explicitly blocks data centers owned by foreign adversaries from receiving tax breaks.
While the Data Center Coalition acknowledges that these new rules create additional hurdles for developers, the group expressed support for the order's overarching goal of protecting natural resources. Despite these increased regulations, experts indicate that data centers continue to be attracted to Nevada due to favorable and cost-competitive land and energy, along with existing tax abatements such as a 75% personal property tax reduction for 10 to 20 years. State lawmakers are now tasked with developing a plan to address the expected power needs over the next decade. Climate reporter Geneva Zoltek, along with Myra Patel, has been investigating this industry in Southern Nevada.