- Governor Joe Lombardo signed an executive order establishing the Nevada Standard for Responsible Data Center Development, which mandates developers to pay the Local School Support Tax in full and cover all project-related costs to protect ratepayers.
- The executive order aims to ensure that costs are not passed on to ratepayers and includes provisions to protect the water supply and electrical grid.
- The Data Center Coalition expressed concerns that the new policies may act as barriers to further development in Nevada.
- Attorney General Aaron Ford condemned the executive order, claiming it maintains the status quo and does not address community concerns regarding data centers.
- In 2015, legislation mandated the Governor’s Office of Economic Development (GOED) to grant tax abatements for data centers without protections for energy or water use.
- The 2025 legislative changes expanded the GOED Board's authority to deny applications or impose conditions on approvals.
Nevada Governor Joe Lombardo has signed an executive order to regulate data center development, ensuring that developers pay the Local School Support Tax in full and cover all associated costs. This initiative aims to restore funding for education and protect vital community resources.1
The order, titled the Nevada Standard for Responsible Data Center Development, mandates that data center developers must not only pay the Local School Support Tax but also sign a binding Community Support Commitment. This commitment requires adherence to local water standards and ensures that costs are not passed on to ratepayers.2
“I promised Nevadans that data centers would be developed responsibly with the community’s interest in mind. Today, we’re delivering on that promise,” Lombardo stated. The order also aims to protect the water supply, electrical grid, and the communities where data centers operate.
Previously, legislation from 2015 allowed tax abatements for data centers without adequate protections for energy and water use. The new order rectifies this by requiring developers seeking partial tax abatements to comply with the new standards.5
“This executive order puts money back into our schools that otherwise would have been lost under outdated state law,” Lombardo added, emphasizing the importance of funding education. The order is expected to facilitate responsible investment and job creation while safeguarding community interests.
“Data centers can be an unprecedented opportunity for Nevada, but if companies want to build here, they need to play by our rules,” Lombardo concluded.
“The order requires data center applicants seeking partial tax abatements to sign a binding Community Support Commitment, established by GOED with state and local agencies. Attorney General Aaron Ford, running against Lombardo, condemned the order as maintaining the status quo, citing $240 million in past tax breaks.”
