Lawmakers discuss data center moratorium
Nevada State Sen. Dina Neal has proposed a statewide moratorium on data center development and ending tax breaks, citing concerns over natural resources and water scarcity, particularly regarding the Colorado River allocation. This proposal faces opposition from Assm. Lisa Cole, who argues Nevada is well-positioned for economic growth in the industry but supports maintaining high standards for water and energy use. Data centers are expected to be a major topic in the upcoming 2027 legislative session.
State Sen. Dina Neal (D-North Las Vegas) has put forth a proposal to implement a statewide moratorium on the creation and expansion of data centers in Nevada, alongside ending tax abatements for the industry. Senator Neal emphasized the need to examine the impact of data centers on the state's natural resources, particularly water, citing a significant reduction in the new allocation on the Colorado River. She argued that placing a moratorium is appropriate and necessary to slow down the impact on Nevada citizens.
However, Assm. Lisa Cole (R-Las Vegas) voiced her opposition to both a moratorium on data center development and the outright repeal of existing tax codes. Assemblywoman Cole asserted that Nevada is currently positioned to achieve significant economic growth in the data center industry, which she views as one of the largest economic drivers globally. She indicated support for well-crafted legislation that would direct local jurisdictions to negotiate development agreements and continue subsidies, provided that data centers are held to the highest standards for water conservation and grid build-out to prevent costs from falling on ratepayers.
The debate over data center development, tax breaks, and resource impact is anticipated to be a prominent and contentious issue during the 2027 legislative session.