What to know about data centers and their growing footprint in Nevada

Nevada has become one of the nation’s hotspots for data‑center development over the past two decades, prompting questions about how the sector affects the power grid, water supplies and other infrastructure. As of May 2026, the Nevada Legislative Counsel Bureau reported that roughly 70 data centers were planned, under construction or already operating in Clark, Washoe, Elko, Lyon and Storey counties. The majority are clustered in Storey County’s Tahoe‑Reno Industrial Center adjacent to Reno, although Switch and several other firms maintain a substantial presence in Southern Nevada. Data centers remain wildly unpopular. A poll conducted by the University of Massachusetts Amherst in September found that only 1 in 9 Americans support the operation of a data center in their community, and the issue has become a flashpoint in the 2026 midterm elections. Lawmakers are certain to revisit the matter, with multiple bill drafts already in circulation. **What are data centers, exactly?** They are rooms, buildings or facilities that house the IT infrastructure powering online applications and services, storing and transmitting data. They form the backbone of today’s digital economy. The rapid expansion of artificial intelligence has driven tech companies to seek additional data‑center capacity to meet AI‑computing demand. **Where are Nevada’s data centers located?** Concerns have largely focused on Northern Nevada. The Tahoe‑Reno Industrial Center in Storey County ranked among the three fastest‑growing data‑center markets in 2025, according to the Desert Research Institute, owing to its proximity to Silicon Valley and the absence of a state income tax. The 167‑square‑mile park—three times the size of San Francisco—hosts Google, Switch, Microsoft, Tract, EdgeCore, Novva, Vantage and PowerHouse. Southern Nevada houses Switch’s corporate office and several of its data centers in southwest Las Vegas, as well as a Google facility in east Henderson. Developers have earmarked parcels within the Apex Industrial Complex in North Las Vegas for future construction. **How much electricity do Nevada data centers consume?** Although data centers currently account for about 5 percent of NV Energy’s electricity sales, the utility’s forecast for the grid serving 90 percent of the state—including Las Vegas and Reno—projects that share could rise to 64 percent of demand by 2046. NV Energy’s systemwide generating capacity approved through 2050 stands at roughly 10 gigawatts. If projected data‑center demand materializes, the required capacity could exceed that figure by 2050, potentially necessitating more than double the utility’s existing approved generation. Utility officials acknowledge that data‑center growth could impede NV Energy’s ability to meet the state‑mandated clean‑energy goal of sourcing half of its power from renewables by 2030. New natural‑gas plants—considered a fossil‑fuel resource—might be pursued to satisfy rising demand, though any such plans would need approval from the Public Utilities Commission of Nevada. **How much water do Nevada data centers use?** Data centers are not obligated to disclose water usage publicly. However, a Review‑Journal analysis of records obtained via a public‑records request showed that, collectively, Nevada’s data centers consumed 716 million gallons of water in 2024—enough to supply roughly 4,395 single‑family households. A Desert Research Institute study estimates that just 12 of the state’s facilities are on track to use about 9,647 acre‑feet, or approximately 3.14 billion gallons, per year by 2033—roughly the annual household water needs of 24.1 million people. **Does water used by Southern Nevada data centers flow into Lake Mead?** Water use is now directly linked to the Southern Nevada Water Authority’s ban on evaporative cooling, which bars new data centers from drawing Colorado River water for cooling. Still, some facilities are exempt from the newer restriction, including Google’s Henderson data center. According to the company’s 2026 sustainability report, that site consumed 239.4 million gallons of water in 2025. **Will Nevada data centers raise residents’ electric bills?** That remains uncertain. Some industry insiders suggest individual bills could drop if utilities gain access to corporate infrastructure, but no safeguards currently exist to guarantee that ratepayers will not bear the cost of grid upgrades needed to accommodate added demand. To prevent cost shifting, NV Energy has proposed agreements that would require large customers to make long‑term service commitments and fund or otherwise support the infrastructure and generation needed to serve their load. Such large‑load agreements are subject to approval by the Public Utilities Commission of Nevada. **What tax breaks do Nevada data centers receive?** Nevada’s tax‑abatement program for data centers has drawn scrutiny. In 2015 a bipartisan bill passed the Legislature and was signed by then‑Gov. Brian Sandoval, a Republican, creating a scheme whereby data centers may receive breaks of up to 75 percent of personal property taxes for 10 or 20 years. The Governor’s Office of Economic Development Board, by a two‑thirds vote, can reduce income and sales taxes to 2 percent from the state’s base rate of 6.85 percent. For the 10‑year abatement, firms must employ at least 10 full‑time Nevada residents within five years, pay no less than 100 percent of the statewide average wage, and invest a minimum of $25 million over the period. For the 20‑year abatement, the thresholds rise to 50 full‑time employees and at least $100 million in spending. **What is Switch building in Nevada?** Switch’s corporate headquarters are in southwest Las Vegas, with several data centers located on a campus it calls “The Core.” Its facilities operate using 1 gigawatt of solar power that it built and supplements with third‑party suppliers, according to the Associated Press, and the company continues to develop additional solar fields. Switch relies solely on NV Energy’s grid for power delivery. In late August, Switch purchased 176.5 acres in North Las Vegas’ Apex Industrial Park for $196 million. Since early the previous year, the company has acquired roughly 546 acres in Southern Nevada—mostly within Apex—for a combined total of about $463 million, property records show. **What are Nevada politicians proposing regarding data centers?** Data centers have become an election issue. Democratic gubernatorial candidate Aaron Ford said he wants to pause their tax breaks, impose a statewide ban on evaporative cooling, hold public hearings on proposed data‑center projects, support community‑benefit agreements and enforce stronger labor standards. Incumbent Gov. Joe Lombardo, a Republican, characterized data centers as an economic opportunity but said his administration would only approve projects that present responsible plans for water use, energy generation and infrastructure demands. Republican officials and campaign ads have highlighted that Ford co‑sponsored the 2015 bill that created the tax‑abatement program while he was Senate president, a position he has since revised. An interim legislative committee led by Sen. Dina Neal (D‑North Las Vegas) voted to draft a bill that would pause data‑center development statewide and repeal their tax breaks; two Republicans opposed the measure. So far, Nye County is the only Southern Nevada jurisdiction to enact an outright ban on data centers, a prohibition that extends to the over‑stressed groundwater basin serving Pahrump. The Henderson City Council considered a moratorium but opted to require developers to negotiate improvement agreements on a case‑by‑case basis. The Clark County Education Association—the state’s largest teachers union, which has endorsed Lombardo—asserts that the income‑tax abatements granted to data centers have cost K‑12 schools approximately $357 million since 2015. Its leaders are seeking a legislative sponsor to compel tech companies to pay those taxes going forward. **Are companies building data centers on public land?** Possibly. A Texas‑based firm is moving forward with plans to construct a data center on Bureau of Land Management‑managed acreage in Boulder City. However, an administrative judge granted city officials and environmentalists a stay, halting construction while the associated appeal is reviewed. Earlier, the developer had sought a city lease—a proposal the Boulder City Planning Commission recommended the City Council reject. That plan was abandoned when federal permits were issued. The case is described as the first of its kind in the nation; the BLM approved converting its support of a solar‑project license for the data center without additional environmental review, a move characterized as a direct effect of President Donald Trump’s 2025 executive directive urging agencies to accelerate permitting for data centers on federal land.