Lombardo executive order puts 'guardrails' on data centers

Nevada Governor Joe Lombardo has signed an executive order to implement new regulations on data centers across the state, specifically mandating sales taxes from new facilities to fund K-12 education. This move comes amidst a heated political exchange with Attorney General Aaron Ford, Lombardo's Democratic rival, with both accusing each other of favoring data center developers. Lombardo's office stated the order addresses public concerns over data center operations, emphasizing predictable "guardrails" to protect communities and resources.

Ford, however, has criticized the executive order as a weak and ineffectual political maneuver, arguing that the governor has been too lenient on the industry. He highlighted that Lombardo received over $1 million from data center developers and pointed to $240 million in state tax abatements given to the industry. Ford proposes suspending all data center tax breaks for an audit, granting local governments veto power over new data centers, and requiring them to use green power and avoid raising utility costs or burdening local water systems if he is elected.

The issue has sparked "widespread, and bipartisan, public opposition" in communities from Boulder City to Reno. Tray Abney, executive director of the Nevada Data Center Alliance, expressed support for Lombardo's order, agreeing that data centers should cover their own power and water costs and contribute to schools. While the alliance would oppose removing all tax incentives or a moratorium, Abney acknowledged the intense public sentiment against data centers, noting it will be a major topic for the 2027 Legislature.