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Ask the RGJ: What are data centers, and why are they coming to Nevada?

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Ask the RGJ: What are data centers, and why are they coming to Nevada?


Data centers are flooding into Northern Nevada so quickly that Reno’s planning commission has asked the city council to hold off on approving more until it can fully understand all possible effects.

The city council in February approved its first data center in the North Valleys. The city argued the Webb Data Center has low water usage, but the development plans to use 28.5 megawatts of power, which is enough to power 17,000 homes on average

Proponents say data centers will provide significant government revenue and diversify the economy, while opponents say they stress the region’s resources and receive undeserved tax breaks.

Nevada has already reported 40 data centers as of October, and more coming with the PowerHouse center breaking ground in Storey County.

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What is a data center?

A data center is a dedicated facility designed to house collections of computer servers that store and manage data, and provide services to other computers.

Melanie Sheldon of the Nevada Governor’s Office of Economic Development told the RGJ that data centers are there to support healthcare, real estate, finance, professional services and transportation organizations. 

Sierra Club Toiyabe Chapter Director Olivia Tanager told the RGJ that because these data centers are running many computer servers, they require loads of energy and power. They also use power for the cooling, ventilation and fire suppression systems to keep the technology from overheating.

The U.S. Department of Energy reports that data centers consume 10 to 50 times the energy per floor space as a typical commercial office building.

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Why are they coming to Nevada?

Heather Wessling Grosz of the Western Nevada Economic Development Authority said Nevada has a lot of open land where data centers can be built away from residential areas.

“I think it’s a positive, especially in some of the rural communities where there is land to be able to develop a large data center,” Grosz said.

However, it’s also the tax incentives that drive businesses like data centers into Nevada.

Data centers in Nevada can receive a 75% personal property tax abatement for 10 or 20 years and a sales tax reduction of 2% for 10 or 20 years, according to Sheldon. 

The data center would submit an abatement application, then go in front of GOED’s board for approval. If approved, they would have a contract with the state and undergo a two- and five-year audit by the county assessor and the Department of Taxation.

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“I think a lot of people think we’re giving away taxes, but we are not,” Grosz said. “Nevada really is standing apart by being more affordable in the long run, but not really putting itself at higher risk by putting a grant up in front.”

For example, Grosz said it’s like getting a discount on something at the store — the product is still being bought, but the discounted rate encourages customers to come to their store.

Tanager argued this tax abatement is too much when Sparks, Reno and Washoe County are expecting deficits in the new year due to lower tax revenue. 

“That’s a really big problem because at the Legislature every other year, we’re rubbing pennies together trying to get basic funds,” Tanager said. “We never have any money, and so this bringing a new industry here and abating basically anything that they would pay into the state is a giant problem.”

However, Sheldon said abatements are always limited and will generate “ongoing” revenue through property taxes, sales taxes and other forms of business taxation.

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“In Nevada, a tax abatement does not fully eradicate a company’s tax liability. The data center (or other company) will still pay taxes despite a reduction,” Sheldon said in an email.

The Apple data center parcel in Washoe County, for example, pays the highest amount of real property tax in the county, according to spokesperson Bethany Drysdale.

Water, electricity usage

Tanager’s primary concerns are with energy and water usage, as she believes data centers will take valuable energy and water from residents.

Assistant Director of Development Services Angela Fuss told the council at last month’s meeting that Reno’s incoming Webb Data Center’s plan uses less water than other Reno developments and uses less power than other Nevada data centers.

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The Webb Data Center uses 2 acre-feet per year, which is more than a single-family home at 0.5 to 1 acre-foot per year, but much less than an average casino which uses 300 acre-feet per year, according to Fuss. The Truckee Meadow Water Authority confirmed these numbers are accurate.

TMWA also told the RGJ that the requirement for water service is the same for data centers as any other development: developers are required to obtain water rights on the open market and dedicate them to the water authority.

Developers are also assessed for the fees needed to activate the water and are required to pay for any new infrastructure needed such as pipes and pumps.

“This ensures existing customers do not pay for growth,” TMWA spokesperson Danny Rotter said by email.

Rotter also confirmed there isn’t a notable difference in growth now compared to the last few decades, and their resource plan expects there will be sufficient water resources for decades.

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As for energy, Fuss called the Webb Data Center a “boutique” data center in comparison to larger-scale centers like Switch that use much more energy than the Reno center is planning to.

NV Energy spokesperson Meghin Delaney told the RGJ via email that NV Energy has a planning process that projects the numbers for Nevada’s future load growth, or increased demand for electricity. This takes into account the state’s projected economic growth, residential growth, increased use of electric vehicles, data centers and other large projects.

“Our planning is designed to meet the projected load forecast to ensure the company can accommodate new customers without sacrificing service to existing customers,” Delaney wrote.

She added that any change in rates will have to be considered by the Public Utilities Commission before it shows up on a customer’s bill.

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NV Energy currently serves approximately 25 data centers.

What are the positives?

Grosz told the RGJ some economic advantages she believes data centers can provide include:

  • Increased construction and electrician jobs during the building phase.
  • More high-paying jobs for a center’s long-term operations.
  • Increased tax revenue for the government from occupying the land.
  • More security for businesses who store their data in local centers.

What are the fears?

Tanager told the RGJ the cons are going to be more damning than the pros:

  • Data centers may not use 100% renewable energy, increasing fossil fuel or coal reliance.
  • Nevada, the driest state in the U.S., may lose valuable water to water-intensive centers and cooling systems.
  • Concern for future power impacts including increases in blackouts and higher customer rates.
  • Fear of potential wildfire if safety measure technology is flawed or fails.
  • Loss of revenue for cities and the state with such a large tax abatement.

Jaedyn Young covers local government for the Reno Gazette-Journal. Her wages are 100% funded by donations and grants; if you’d like to see more stories like this one, please consider donating at RGJ.com/donate. Send your story ideas and feedback to Jaedyn at jyoung@rgj.com.



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Nevada sheds 7,100 construction jobs amid labor shortage: report

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Nevada sheds 7,100 construction jobs amid labor shortage: report


LAS VEGAS (FOX5) — According to data from the Associated General Contractors of America (AGC), Nevada shed 7,100 construction jobs, a total of 6.4% of the workforce, in the last 12 months. It represents the percentage loss in the county.

When compared month to month, the Silver State saw similar drops, with 4,400 jobs lost from July to August, a 4.1% decline. Nationally, association officials noted a difficulty in filling open positions, with 92% of firms reporting having a hard time finding workers. 45% of firms delayed projects due to labor shortages.

“Most firms are struggling to find enough workers to hire amid persistent labor shortages,” said Ken Simonson, chief economist for the AGC. “These labor shortages are the number one cause for delayed construction projects, according to our recent survey.”

“The construction officials urged federal leaders to boost funding for construction education and training and create more lawful pathways for people to enter the country to work in construction,” the report said.

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The report follows data from real estate website Redfin, which indicates that Las Vegas is the fastest-cooling U.S. housing market, with home sales down 10.2% year over year.



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Country star cancels final tour stop over safety concerns

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Country star cancels final tour stop over safety concerns


Country music star Bailey Zimmerman was forced to cancel the final show of his “New To Country Tour” because of safety concerns at the Rio Vista Outdoor Amphitheater in Laughlin, Nevada, Parade reports.

In an Instagram post featuring a simple black backdrop, Zimmerman expressed his disappointment about the cancellation.

“This is something an artist never wants to tell their fans,” he wrote on Saturday. “I am beyond disappointed, and I’m sorry, but we have to cancel our show tonight in Laughlin, NV.”

The cancellation stemmed from what Zimmerman described as “unforeseen local production limitations” and an unsafe stage. He emphasized that the decision had nothing to do with him or his team, stating they arrived “fully prepared to end the New To Country Tour the right way.”

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“The safety of y’all, my band, and my crew is the most important thing to me, and I just can’t put y’all at risk,” Zimmerman explained in his post.

He added, “I really hate disappointing you all, and I hate ending the tour this way, but like I said, it’s what I have to do.”

Fans who purchased tickets to the Laughlin concert will receive full refunds to their original method of payment, with payments expected to appear within 14-21 days. Ticket holders with questions are advised to contact their ticket providers directly.

Despite the disappointing conclusion to his current tour, Zimmerman has already announced his next venture. The “Different Night Same Rodeo Tour” is scheduled to begin on Feb. 19, and it will cover more than 30 cities across the United States, including Knoxville, Boston, Atlanta, Fort Worth, Nashville and Toronto.

The tour is set to conclude June 20.

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The “New To Country Tour,” which began on June 6 in Indianapolis, featured special guests Dylan Marlowe and Drew Baldridge.

Fans responded supportively to Zimmerman’s announcement, with one commenting, “I’m so sorry, BZ! I know you care soooo much about your fans and team. This must have been such a hard choice.”

Another added, “Sad, but you and your crew need to be safe.”

This story was written with the assistance og AI.

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Nevada protects consumers from utility shutoffs in extreme heat. Advocates want more. – The Nevada Independent

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Nevada protects consumers from utility shutoffs in extreme heat. Advocates want more. – The Nevada Independent


As electricity costs grow steeper and Nevada summers grow deadlier, advocates are sounding alarms about the risks to low-income people who can’t afford consistent air conditioning in dangerous temperatures.

Between May and August 2025, there were at least 114 heat-related deaths in Clark County alone, according to the county coroner’s office.

This summer’s scourge of heat-related death and illness mirrors a nationwide trend. Recent studies show that extreme summertime heat is now the leading cause of weather-related deaths, according to the U.S. Environmental Protection Agency (EPA).

In 2023, the death certificates of more than 2,300 people who died in the summer mention the effects of excessive heat, the highest number in 45 years of records, according to an Associated Press analysis of Centers for Disease Control and Prevention data. Three-quarters of those deaths occurred in five states: Arizona, Texas, Florida, Louisiana and Nevada. 

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According to the nonprofit organization Climate Central, Las Vegas and Reno are the two fastest-warming cities nationwide. Las Vegas’ environment puts residents at particular danger from extreme heat. The city’s sprawl has created a “heat island,” where heat-absorbing roads and buildings further increase temperatures.

Yanci Hill works to protect her fellow Nevadans from extreme heat as part of the Latin-focused environmental group Chispa Nevada, which advocates for less expensive utility costs and more transparent utility policies for Nevadans. She experienced extreme heat herself in July 2024, when the central air-conditioning unit in her one-story home in Henderson broke.

Hill, her husband and their 18-year-old daughter spent five days virtually trapped inside their home. “It was 113 degrees outside,” she explained, “and 102 degrees inside. We were sleeping with cold compresses on our foreheads and ice packs under our pillows.” The heat got so bad, Hill said, one of the family cats fell ill with liver disease. 

Hill said one of her friends once had her utilities shut off because she was a few dollars short on her bill.

The federal government has long recognized the need to ensure Americans can access their utilities in extreme weather. Since 1980, the federal Low Income Home Energy Assistance Program (LIHEAP) has provided funds to state governments to subsidize residents who have trouble affording their heating or cooling bills. But according to Mark Wolfe, executive director of the National Energy Assistance Directors Association (NEADA), which represents the program’s state managers, roughly 85 percent of the program’s resources are used for heating in the winter. That leaves less support available nationally for households requiring cooling. 

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“How do we protect vulnerable households both during periods of extreme heat and extreme cold?” asked Wolfe. “The rules haven’t caught up.” 

Nationally, the cost of electricity has risen at twice the pace of the average cost of living, exacerbating this problem. According to NEADA, almost one in every five of the poorest families lacks consistent access to cooling. 

To supplement the LIHEAP program’s efforts and keep utilities operating in sweltering heat, many states bar utility companies from disconnecting services in certain temperatures or during certain months.

Nevada is one of 20 states that offer protections from utility shutoffs during extreme heat and one of 41 states that offer the same protections during extreme cold. According to the Public Utilities Commission of Nevada (PUCN), utilities cannot be disconnected when the temperature is above 105 degrees. If customers are elderly or disabled, that threshold drops to 95 degrees. Utility disconnections also must be delayed for 30 days if a resident is experiencing a medical emergency. 

But Olivia Tanager of the Sierra Club’s Toiyabe Chapter, one of Nevada’s largest environmental organizations, said she believes the state must do more. 

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Some states have their temperature-based protections kick in at a lower threshold. Arizona, for instance, prevents utilities from being shut off during summer months or whenever it hits 95 degrees. 

“I think a lower threshold — in the 92 or 95 degree area — would be much more reasonable for Nevada, because we also know, especially in Southern Nevada, the heat disparities between different neighborhoods are very extreme,” said Tanager. 

In this year’s legislative session, a bill that went even further — prohibiting utility cutoffs from May 1 to Oct. 31 — died without a hearing.

Along with more expansive time- or temperature-based protections, environmental and consumer advocates have encouraged the state to provide more robust financial assistance to low-income families. Nevada is one of 26 states plus Washington, D.C., that offer assistance with summer energy bills, partnering with the federally funded LIHEAP to provide support to consumers through the Energy Assistance Program (EAP). NV Energy, which controls the majority of utilities in Southern Nevada, also oversees the Special Assistance Fund for Energy (SAFE) program, which is intended to supplement state and federal assistance.

But Nevada is not one of the 21 states with explicit policies protecting low-income families from utility disconnections during summer months. Such disconnections are only barred if the temperature is above 105 degrees. But even if families keep their utilities on in such intense heat, they must foot the bill. A public utilities commission spokesperson told The Nevada Independent in a statement that Nevada places “a moratorium on disconnections during periods of extreme temperatures; the regulations do not exempt customers from paying utility bills incurred during extreme temperature periods.”

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Residents are only allowed to receive EAP funds once annually, which Tanager says further prevents the program from becoming a long-term solution to an affordability crisis. 

“While we do have resources, and while we appreciate those resources existing, we know that it’s not working for everybody,” she said.

Tanager’s Sierra Club and Hill’s Chispa Nevada are part of the Nevada Environmental Justice Coalition, which sent a group of activists to the state legislative session in April 2025 to advocate for greater transparency and affordability concerning utilities. They petitioned successfully for the passage of AB442, which requires the Public Utilities Commission to report quarterly data on when and where utility services are being disconnected, and AB452, which requires greater transparency around the setting of utility rates.

“AB452 was really about consumer protections — how do we know what we’re paying for as energy consumers?” said Assm. Tracy Brown-May, who sponsored the bill. “So that we know when [Nevada utility companies] purchase that natural gas, the cost of it is not all immediately passed onto the rate payer, with no data or information as to why.”

In February 2025, NV Energy proposed a revenue increase that would spike rates up to 9 percent, a move they justified by pointing to last year’s expensive heat waves. The Public Utilities Commission, forced to delay August public hearings on the matter due to the government’s recent cyberattack, is expected to vote on the proposed rate hike next week. 

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Tanager, for her part, said she hopes that the commission votes against the hike. 

“The utility companies are bringing in record profits year-after-year, but Nevadans continue to be squeezed more and more,” she stated. “Several percentage points of people in each ZIP code are unable to pay their utility bill each year, which is, in my opinion, just disgusting.” 

Cora Lewis of The Associated Press contributed to this article.



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