The data center ‘tsunami’ has flooded Nevada. Are lawmakers too late to regulate?

Nevada lawmakers are evaluating the need for statewide regulations on data centers as the industry's expansion raises substantial concerns about energy and water usage. During a recent meeting of Nevada's interim committees on natural resources and growth and infrastructure, Assemblymember Howard Watts III emphasized the need to reassure communities about future standards. Industry representatives, utility heads, researchers, tribal leaders, and environmentalists provided input to inform potential legislation in the 2027 session. NV Energy's 2024 integrated resource plan indicates that accommodating 12 proposed data centers could increase the state's energy load by nearly 50%, potentially jeopardizing clean energy goals and necessitating reliance on natural gas plants. Data centers in Southern Nevada alone consumed 352.6 million gallons of water last year. A diverse coalition, including the Nevada Farm Bureau, the Sierra Club, and Mormon Women for Ethical Government, expressed support for stricter controls. While Dan Diorio of the Data Center Coalition highlighted advancements in closed-loop cooling systems and the potential for large-load tariffs to manage utility costs, the Southern Nevada Water Authority's General Manager John Entsminger noted that a 2024 ban on evaporative cooling in new developments has already led to proposals for near-zero water footprint facilities. Both Assemblymember Watts and Pyramid Lake Paiute Tribe Chair Steven Wadsworth suggested that Southern Nevada's cooling ban could serve as a model for statewide policy. NV Energy plans to submit an updated resource plan this year, which is expected to show numerous requests for large-load power connections. Shawn Elicegui, NV Energy's senior vice president, stated the company's priority is to balance development with maintaining affordable and reliable energy rates for residents, citing Google's partnership with geothermal company Fervo as an example of clean energy solutions.