Governor Lombardo signing executive order on data center development

Nevada Governor Joe Lombardo has signed an executive order designed to establish new regulations and guardrails for data center development within the state. The order, announced today, aims to ensure that data center projects provide tangible benefits to Nevadans and do not place undue burdens on local communities or resources.

Key provisions of the executive order require data center developers seeking partial tax abatements to fully pay the Local School Support Tax. Additionally, developers must cover all project-related costs to prevent them from being passed on to ratepayers, and sign a binding Community Support Commitment. This commitment, to be established by the Executive Director of the Governor's Office of Economic Development (GOED) in consultation with state and local entities, also mandates that projects meet local water standards and do not strain the electrical grid or communities.

The order follows previous legislation from 2015 that granted tax abatements without explicit protections for energy and water use. While the 2025 Legislature expanded GOED's authority to deny or condition applications, Governor Lombardo's executive action further solidifies these requirements. The state also commits to a Responsible Speed to Power Plan to meet future energy demands without ratepayer cost increases.

While Khara Boender, Director of Government Affairs – West for the Data Center Coalition, thanked Governor Lombardo for his leadership, she also expressed concerns that some policies within the executive order could act as barriers to future data center development in Nevada. The Coalition indicated its intention to continue working with the governor and state policymakers on responsible development.