Have data center tax breaks helped Nevada's economy? Here's what we found.

Nevada lawmakers approved a bill in 2015 to dramatically cut sales and personal property tax burdens for data centers, aiming to rebuild and diversify the state's economy after the Great Recession. Steve Hill, then director of the Governor's Office of Economic Development (GOED), championed the initiative, projecting significant job creation and economic activity. More than a decade later, the program, which has granted $457 million in projected tax abatements, faces significant disagreements regarding its economic efficacy. Supporters, including Austin Osborne, the county manager for Storey County (where many abated data centers like Google and Switch are located), emphasize the union employment boom in Northern Nevada and property tax windfalls for local governments. Union leaders, such as Jacob Haas of IBEW Local 401 and Kalani Kanekoa of Plumbers and Pipefitters Union Local 350, attest to the massive increase in construction work fueling their growth, though Haas acknowledges the tax breaks may not be strictly necessary. Conversely, opponents, including Professor Michael Hicks of Ball State University, argue that data centers create few permanent jobs—only about 300 for the $457 million in incentives—and are heavy users of electricity and water. The state's tracking of the program's economic impact is limited, relying on initial projections and providing minimal audit information, which public record experts suggest may violate state law. While Nevada continues its incentive program, the article notes that other states like Georgia, Washington, and Connecticut are moving to curtail similar data center incentive programs.