Reno, Nev. – Nevada Governor Joe Lombardo today signed an executive order aimed at ensuring that new data‑center projects benefit Nevadans and do not strain the state’s resources. The order restores education funding that was lost under earlier data‑center legislation and adds clear guardrails for future development.
Key requirements for developers
Under the new order, any data‑center applicant seeking a partial tax abatement must agree to pay the Local School Support Tax in full before the Governor’s Office of Economic Development (GOED) Board can consider the request. Applicants must also sign a binding Community Support Commitment, which obligates them to cover all project‑related costs without passing those expenses onto ratepayers.
Additional safeguards require developers to meet local water‑quality standards, demonstrate that their facilities will not overload the electrical grid, and prove that they can offset any increase in electricity demand so that the average Nevada resident sees no rise in their power bill.
State commitments
The order outlines a “Responsible Speed to Power” plan that identifies the facilities needed to serve the anticipated load through 2036. Nevada will continue to provide electricity for data centers, but the cost of any additional power must be borne by the developers, not by ratepayers.
“I promised Nevadans that data centers would be developed responsibly with the community’s interest in mind. Today, we’re delivering on that promise,” Governor Lombardo said in the release. “Developers must pay their share, protect our water resources, keep costs from being passed on to ratepayers, and protect the communities that host them.”
Industry reaction
Khara Boender, Director of Government Affairs – West for the Data Center Coalition, thanked the governor for his leadership but warned that some provisions could act as barriers to further development. “We will continue to work with the governor and state policymakers to advance responsible development,” Boender said.
The coalition’s concerns focus on the binding Community Support Commitment and the requirement to pay the full school tax, which they argue could deter investment in a sector that already brings high‑paying jobs to the state.
Background
In 2015, Nevada passed legislation that gave the GOED Board authority to grant tax abatements to data‑center projects that met specific employment, wage, and investment thresholds. Those early rules lacked protections for water use, power consumption, and community impact. The Legislature expanded the Board’s authority in 2025, allowing it to deny applications, approve reduced abatements, or impose conditions.
The new executive order builds on those changes by tightening the criteria for tax relief and ensuring that the state’s education funding, which had been reduced under the earlier tax‑abatement framework, is fully restored.
What this means for Nevada
By tying tax benefits to concrete community contributions, the order aims to balance economic growth with the protection of Nevada’s natural resources and public services. If successful, the policy could serve as a model for other states seeking to attract high‑tech infrastructure while safeguarding local interests.
The full text of the executive order is available on the Governor’s website.
Original reporting: 2news.com — read the source article.
