Nevada Data Center Growth Raises Water, Grid and Tax-Abatement Concerns
Nevada has 67 data center facilities that are operational, under construction, planned or proposed, with projects concentrated in Clark and Storey counties. Gov. Joe Lombardo’s executive order adds water, grid reliability, community benefit and ratepayer protections to data-center tax-abatement applications, while concerns remain about whether Nevada’s water and electricity resources can support all proposed campuses.
Nevada has 67 independently metered data center facilities in operation, under construction or in planning, including 32 projects in Clark County and 23 in Storey County. The state’s tax-abatement program allows qualified facilities to receive reduced sales and use taxes and substantial personal-property-tax abatements, subject to employment requirements.
Attorney General Aaron Ford has said he would pause new data center tax breaks if elected governor. Separately, Gov. Joe Lombardo signed Executive Order 2026-005 requiring additional consideration of water availability, grid reliability, community benefits and electricity ratepayer protections in tax-abatement applications. The article questions whether existing municipal, groundwater and recycled-water supplies, as well as the electric grid, can support every announced campus and whether the economic benefits will offset costs to Nevada residents and existing utility customers.