Governor Lombardo signs executive order on data center development
Nevada Governor Joe Lombardo has issued an executive order to regulate data center development across the state. The order mandates developers to fully pay the Local School Support Tax, cover project-related costs without passing them to ratepayers, and protect water supplies and the electrical grid. It also requires a binding Community Support Commitment from applicants seeking tax abatements.
Nevada Governor Joe Lombardo signed an executive order aimed at imposing "guardrails" on data center development and restoring education funding previously affected by data center legislation. The order mandates that data center developers seeking partial tax abatements must fully pay the Local School Support Tax and sign a binding Community Support Commitment. This ensures developers cover all project-related costs, preventing them from being passed on to ratepayers.
The executive order also includes provisions to safeguard Nevada's water supply and electrical grid, and to protect communities where data centers operate. Governor Lombardo stated that the order delivers on his promise for responsible data center development, requiring developers to "pay their share, protect our water resources, keep costs from being passed on to ratepayers, and protect the communities that host them."
Specific requirements include meeting local water standards, covering facility service costs without impacting ratepayers, and ensuring projects do not strain the electrical grid or local communities during emergencies. The state, in turn, commits to a "Responsible Speed to Power Plan" to identify necessary facilities for anticipated large loads through 2036, also without cost increases for Nevadans.
Khara Boender, Director of Government Affairs – West for the Data Center Coalition, acknowledged Governor Lombardo's leadership but expressed concerns that some policies within the executive order might hinder further data center development in the state. She indicated the Coalition's intent to continue working with state policymakers to advance responsible development.