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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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EDITORIAL: Nevada still vulnerable as tourist downturn continues

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EDITORIAL: Nevada still vulnerable as tourist downturn continues


Strip gaming executives can put their best spin on the numbers, but local tourism indicators remain a major concern. Casino operators seeking to draw more people through the door still have much work to do.

The Nevada Gaming Control Board released January gaming numbers Friday. The news was underwhelming. The state gaming win was down 6.6 percent from a year earlier. The Strip took the largest hit, an 11 percent drop. But the gloomy returns were spread throughout Clark County: Downtown Las Vegas was off 5.2 percent, Laughlin suffered a 3.3 percent decline and the Boulder Strip dipped by 7 percent.

For the current fiscal year, gaming tax collections are up a paltry
2.1 percent, below budget projections.

The red flags include more than gaming numbers. Recently released figures for 2025 reveal that visitation to Las Vegas fell nearly 8 percent from 2024, which represented the lowest total since the pandemic in 2021. Traffic at Reid International Airport fell more than 10 percent in December and was down 6 percent for the year. Strip occupancy rates fell 3 percent in 2025.

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To be fair, this is not just a Las Vegas problem. International travel to the United States was down
4.8 percent in January, Forbes reported, the ninth straight month of decline. Travel from Europe fell 5.2 percent, and passenger counts from Asia fell 7.5 percent. Canadian tourism cratered by 22 percent.

No doubt that President Donald Trump’s blustery rhetoric has played a role in the decline, but there’s more at work. International tourism has been largely flat since Barack Obama’s last few years in office. But domestic travel has held relatively steady although it is “starting to cool,” according to the U.S. Travel Association. Las Vegas hasn’t been helped by high-profile complaints last year about exorbitant Strip prices for parking, bottled water and other staples. Casino operators responded by offering discounts, particularly for locals, and they’ll need to continue those policies into 2026.

The tourism downturn has ramifications for the state budget, which relies primarily on sales and gaming tax revenues to support spending plans. “Nevada’s employment and economic challenges reflect deep structural factors that extend beyond cyclical economic fluctuations,” noted a recent report by economic analyst John Restrepo. “The state’s extreme concentration in tourism and gaming creates unique vulnerabilities.”

The irony is that state and local politicians have been talking for the past half century about “diversifying” the state economy. In recent years, that effort has primarily consisted of handing out millions in tax breaks and other incentives to attract businesses to the state. A dispassionate observer might ask whether that approach has brought an adequate return on investment.

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2026 lunar eclipse visible in Nevada. How to watch

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2026 lunar eclipse visible in Nevada. How to watch


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A lunar eclipse will be in Nevada skies late Monday night — or, more accurately, early Tuesday morning, March 3.

The downside is the hour: you’ll have to be up very late or very early, depending on your perspective.

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Unlike a solar eclipse, which occurs when the moon passes between the Earth and the sun, a lunar eclipse happens when Earth casts its shadow on the moon, creating a rusty red hue.

If you’re looking to see the lunar eclipse, here’s everything you need to know about viewing it in Nevada.

What eclipse is in 2026?

If you live in the U.S., you will be able to see the lunar eclipse starting at 12:44 a.m. PST Tuesday, March 3, 2026, according to NASA. During the night, you’ll see the moon in a reddish hue, or a blood moon.

Totality lasts for a little more than an hour before the moon begins to emerge from behind Earth’s shadow, according to the popular site timeanddate.com. As the moon moves into Earth’s shadow, also known as the umbra, it appears red-orange or a “ghostly copper color,” hence its name: blood moon, NASA says.

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“During a lunar eclipse, the moon appears red or orange because any sunlight that’s not blocked by our planet is filtered through a thick slice of Earth’s atmosphere on its way to the lunar surface,” NASA says. “It’s as if all the world’s sunrises and sunsets are projected onto the moon.”

Countdown clock to the 2026 total lunar eclipse

If you live in the U.S., you will be able to see the eclipse starting at 12:44 a.m. PST Tuesday, March 3, 2026.

The entire eclipse will last about six hours. People in Nevada can see the lunar eclipse during the early morning hours of Tuesday, March 3, 2026. The total lunar eclipse will be visible in North America, South America, Eastern Europe, Asia, Australia and Antarctica.

Everything will be over by 6:23 a.m. PST on March 3, 2026. Below is a countdown clock for the 2026 total lunar eclipse.

Where are the best places to see the lunar eclipse near Reno?

Though the Biggest Little City has an abundance of light pollution, darker skies are less than an hour from Reno.

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  1. Fort Churchill State Park: The park provides a dark night sky ideal for evening astronomical events among the ruins of Fort Churchill. Park entrance costs $5 for Nevada residents and $10 for nonresidents.
  2. Pyramid Lake: A popular spot for Renoites seeking a night of stargazing, the lake is less than an hour from The Biggest Little City. It offers beautiful natural wonders and dark skies that give a clear view of the lunar eclipse.
  3. Lake Tahoe: Multiple locations around the lake are excellent for stargazing that are less than an hour from Reno.
  4. Cold Springs or Hidden Valley still get light pollution from the Biggest Little City, but have clearer skies than the middle of town.
  5. Driving down the road on USA Parkway will likely also give you the dark skies to see the lunar eclipse without having to make a significant drive outside of town.

Carly Sauvageau with the Reno Gazette Journal contributed to this report.



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How the strikes on Iran could impact gas prices in northern Nevada

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How the strikes on Iran could impact gas prices in northern Nevada


The United States and Israel launched targeted attacks on Iran on Saturday. The move brought new uncertainty into global energy markets, as northern Nevadans could be paying more at the pump in the coming weeks.

Following the strikes, oil prices increased. Brent crude, the international benchmark, jumped to roughly $73 a barrel, while the national benchmark, West Texas Intermediate, traded above $67.

Much of the concern centers around the Strait of Hormuz, a narrow waterway between Iran and Oman. which carries about a fifth of the world’s oil supplies.

Patrick de Haan, head of petroleum analysis with GasBuddy, a price tracking company, spoke on the current questions in the region.

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“The known would reduce oil prices if there becomes clarity, but it’s the unknown that is stoking fears…. If there is some sort of clarity in the days ahead, whether from Iran, the United States, or Israel, on how long this would last. We’d be able to put potentially an end date for the potential impacts that we’re seeing,” said de Haan.

Experts say for every $5 to $10 increase in oil prices, drivers could pay 15 to 25 cents more per gallon.

According to Triple-A, the average price of a gallon of gas in Nevada on Sunday comes in at $3.70, which comes in above the national average of roughly $2.98.

Over at the Rainbow Market on Vassar Street, prices sat just below four dollars a gallon on Sunday. Reno resident Abran Reyes talked about gas prices potentially going up.

“Whether it’s to work, to maybe run errands, to do stuff that helps you, gas is essential…. That gas price really hits, especially in today’s economy, where gas prices are extraordinary…. I just hope everyone’s safe. I hope our soldiers and all of our troops can be okay,” said Reyes.

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