On the issues: Lombardo, Ford have differing approach to data center expansion
Nevada gubernatorial candidates Joe Lombardo and Aaron Ford have differing views on data center expansion, driven by growing demand and public unpopularity. Lombardo issued an executive order to draft a "community support commitment" with new tax conditions and address environmental concerns, while Ford advocates for pausing tax breaks and stricter regulations. Both support responsible development but diverge on the approach to managing the industry's resource consumption and economic impact.
Nevada's gubernatorial candidates, Joe Lombardo and Aaron Ford, are presenting contrasting approaches to regulating the state's expanding data center industry. The debate arises from increasing public concerns over the industry's significant power and water consumption, despite bipartisan support for data center tax credits over a decade ago. A recent Pew Research Center survey indicates declining public support, with many Americans believing data centers negatively impact energy costs, the environment, and quality of life. The Nevada Legislative Counsel Bureau reported that 70 new data centers are planned statewide, intensifying these discussions.
Governor Joe Lombardo, on September 18, issued an executive order directing the Governor's Office of Economic Development (GOED) to develop a "community support commitment" by November 6. This plan aims to eliminate tax exemptions for data center developers regarding local school taxes, a move supported by the Clark County Education Association and the Data Center Coalition. Lombardo's order also tasks GOED with addressing broader concerns such as water usage, electric grid strain, utility rates, reliability, zoning, and transparency, ensuring developers adhere to these conditions for tax abatement eligibility. He views this as an initial step, foreseeing a legislative process to establish a statewide model for data center regulation.
In contrast, Aaron Ford, who co-sponsored the 2015 bill that created data center tax abatements, criticizes Lombardo's plan as "weak" and "a little too late." Ford proposes a pause on these tax breaks until GOED audits existing facilities for compliance with job creation and economic benefit commitments. His platform includes extending the ban on evaporative cooling in Southern Nevada, mandating union jobs, ensuring data center energy use doesn't raise consumer prices, and closing regulatory loopholes, emphasizing the need for transparency and community input due to advancements in AI and increased resource demands not present in 2015.